Comprehensive Annual Financial Report - 2003-2004Comprehensive
Annual Financial Report
Fiscal Year Ended
September 30, 2004
City of Clermont, Florida
City of Clermont, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2004
Prepared by: Administrative Services Department
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CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2004
Page
Introductory Section:
Table of Contents
Letter of Transmittal iii-vi
GFOA Certificate of Achievement vii
List of Principal Officials viii
Organizational Chart ix
Financial Section:
Independent Auditor's Report 1-2
Management's Discussion and Analysis 3-13
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements:
Balance Sheet - Governmental Funds
16
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
17
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
18
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
19
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual — Infrastructure Special Revenue Fund
20
Statement of Net Assets - Proprietary Funds
21-22
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
23
Statement of Cash Flows - Proprietary Funds
24-25
Statement of Fiduciary Net Assets - Fiduciary Funds
26
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
27
Notes to Financial Statements 28-53
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2004
Paqe
Financial Section - Continued:
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds
54-55
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Nonmajor Governmental Funds
56-57
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual:
Special Revenue Funds
58-61
Debt Service Fund
62
Capital Project Fund
63
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets
64
Combining Statement of Changes in Fiduciary Net Assets
65
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Function and Activity
66
III. Statistical Section:
General Governmental Expenditures by Function
67-68
General Governmental Revenues by Source
69-70
General Governmental Expenditures by Function
71-72
General Governmental Revenue by Source
73-74
Property Tax Levies, Tax Collections and Assessed Valuations
75-76
Property Tax Rates — Direct and All Overlapping Governments
77-78
Computation of Direct and Overlapping General Obligation Debt
79
Demographic Statistics
80
Property Value, Construction, and Bank Deposits
81-82
Water and Sewer Customer Data
83
Principal Taxpayers
84
Miscellaneous Statistical Data
85-86
Utility Revenue Bond Coverage - All Utility Revenue Bonds
87-88
Largest Employers
89
Schedule of Insurance Coverages
90-91
IV. Other Reports:
Report on Compliance and on Internal Control over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards 92-93
CITY OF CLERMONT
January 27, 2005
Office of the City Manager
To the Honorable Mayor and City Council and Citizens of the City of Clermont, Florida:
State law requires that all general-purpose local governments publish a complete set of
financial statements presented in conformity with accounting principles generally accepted in
the United States of America (GAAP) and that they be audited in accordance with auditing
standards generally accepted in the United States of America by a firm of licensed certified
public accountants. Pursuant to that requirement, it is with great pleasure that we present to
you the City of Clermont, Florida Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended September 30, 2004.
This year's report has been reformatted to comply with the new financial reporting model
developed by the Governmental Accounting Standards Board (GASB) Statement 34, Basic
Financial Statements -and Management's Discussion and Analysis -for State and Local
Governments. The new financial reporting model completely changes the format of the City's
financial statements. It is intended to improve financial reporting by incorporating significant
additional information not previously available in public sector financial reporting.
In addition to the fund -by -fund financial information previously presented in the City's financial
statements, the new model has a number of key features as follows:
➢ Government -wide financial reporting - The government -wide statements present a clear
picture of the government as a single, unified entity. These new statements complement
rather than replace traditional fund -based financial statements. Included in the government -
wide statements is a "Statement of Net Assets" that provides the total net equity of the City
including capital assets and debt and the "Statement of Activities" that shows the cost of
providing government services.
➢ Long-term focus for governmental activities - Traditional "fund" financial statements focus
on near -term inflows, outflows and balances of spendable financial resources and are
prepared using the "modified" accrual method of accounting. The government -wide
statements have been prepared with a long-term focus using the "full" accrual basis of
accounting. A reconciliation report is provided as a key to understanding the changes
between the two reporting methods. The most significant differences between the two types
of reporting methods relate to the recordation of capital assets (including prior expenditures
for infrastructure) and debt in the government -wide statements. The use of separate
account groups to record general fixed assets and general long-term debt were eliminated.
P.O. BOX 120219 • CLERM.ONT, FLORIDA 34712-0219
PHONE: 352/394-40d4 • FAX: 352/394-1452
➢ Management's Discussion and Analysis (MD&A) - GAAP require that management provide
a narrative introduction, overview, and analysis to accompany the basic financial statements
in the form of a MD&A. The MD&A provides "financial highlights" and interprets the
financial reports by analyzing trends and by explaining changes, fluctuations and variances
in the financial data. In addition, the MD&A is intended to disclose any known significant
events or decisions that affect the financial condition of the City. This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City of
Clermont's MD&A can be found immediately following the report of the independent
auditors.
➢ Major funds - The new reporting model includes an emphasis on the City's major funds as
shown in the Governmental Fund Statements. Nonmajor funds are aggregated in the
government -wide statements; however detail can be found for the nonmajor funds in the
traditional fund statements.
➢ Expanded budgetary focus - Under the new model, budget information is presented for both
the original and the final amended budget.
Management assumes full responsibility for the completeness and reliability of all 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 GAAP. Because the cost of internal controls should not
outweigh their benefits, the City of Clermont's comprehensive framework of internal controls
has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
The City of Clermont's financial statements have been audited by McDirmit Davis & Company,
LLC, a firm of licensed certified public accountants. The goal of the independent audit was to
provide reasonable assurance that the financial statements of the City of Clermont for the fiscal
year ended September, 30, 2004, are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made
by management; and evaluating the overall financial statement presentation. The independent
auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that the City of Clermont's financial statements for the fiscal year ended
September 30, 2004, are fairly presented in conformity with accounting principles generally
accepted in the United States of America. The independent auditor's report is presented as the
first component of the financial section of this report.
Profile of the Government
The City was incorporated in 1916. The City currently has a land area of 11.58 square miles
and a population of approximately 17,654. The City is located in south Lake County,
approximately twenty-two miles west of the City of Orlando and twenty-two miles southeast of
the City of Leesburg. The City is conveniently accessible to Orlando via Florida Highway 50.
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
iv
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 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 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
to the council for review. The City Council is required to hold public hearings on the proposed
budget and to adopt a final budget by no later than September 30, the close of the City of
Clermont's fiscal year. The appropriated budget is prepared by fund (e.g., general fund), and
department (e.g., fire department). The City Manager may make transfers of appropriations
within departments, however, any revisions that alter the total appropriations of a department
must be approved by City Council. Original and final amended budget -to -actual comparisons
are provided in this report for each individual governmental fund. The General Fund is
presented on page 19 and the Infrastructure Special Revenue Fund is presented on page 20 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 58.
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.
Local economy. The City is essentially residential in character and its economy is 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 27.1% from
the previous year. The expanding tax base has provided increased revenue enabling the City to
fund necessary projects and personnel needed to maintain the adopted levels of service. 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 expansion trends.
Cash management policies and practices. The City administers a cash management and
investment program that seeks to maximize, in order of priority, the preservation of funds, liquidity
and interest earnings over its cash and investments. Cash resources of the individual funds are
combined to form a pool of cash and investments. The average cash and investment pool
balance during the year (not including pension funds) was $36,138,416 and the average
investment earnings rate was 1.5%. Investment income includes the change in the fair value of
investments. During the year monies were invested in U.S. Agencies and Treasuries and the
State Board Administration Local Government Investment Pool in accordance with the City's
Investment Policy. Pension fund assets were invested mainly in equity and bond funds in
accordance with the City's Investment Policy for Retirement Funds. The average total pension
fund assets during the year were $6,889,363 and the average investment income was 7% due to
►A
an increase in the fair value of investments.
Risk Management. During the ordinary course of its operations, the City is exposed to various
risks of losses. The City maintains commercial insurance coverage in amounts management
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.
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 (ARC) 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 and firefighters are required to
contribute 1% of their salary to the plan. General employees do not contribute to the plan.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Clermont for its CAFR for the fiscal year
ended September 30, 2003. The City of Clermont has received a Certificate of Achievement for
the last sixteen consecutive years. In order to be awarded a Certificate of Achievement, the
government published an easily readable and efficiently organized CAFR. This report satisfied
both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR 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,
jw-�W�W�=�
Administrative S ice irector
w
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, 2003
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.
� OF1N
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President
SEAL
* / A'-0'4�
Executive Director
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CITY OF CLERMONT, FLORIDA
LIST OF PRINCIPAL OFFICIALS
Year Ended September 30, 2004
Keith Mullins - Mayor Pro-Tem
Frank Caputo - Council Member
CITY MANAGER
Wayne Saunders
CITY ATTORNEY
Daniel F. Mantzaris
MAYOR
Harold S. Turville, Jr.
CITY COUNCIL
Gail Ash - Council Member
Elaine Renick - Council Member
CITY CLERK
Tracy Ackroyd
ADMINISTRATIVE SERVICES DIRECTOR
Joseph E. Van Zile
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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, 2004, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of
September 30, 2004, and the respective changes in financial position and cash flows, where
applicable, thereof and the respective budgetary comparison for the general 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@n MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION • AMERIC.AN INSTITUTE OF CERTIFIED PUBLICACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
As described in Note 1, the City has implemented a new financial reporting model as required by
the provisions of GASB Statement No. 34, Basic Financial Statements - and Management's
Discussion and Analysis — for State and Local Governments, as of October 1, 2003.
In accordance with Government Auditing Standards, we have also issued a report dated
January 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 grants. 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 Governmental
Auditing Standards Board. 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 an opinion 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.
January 21, 2005
E
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Clermont, Florida we offer readers of the City of Clermont's financial
statements this narrative overview and analysis of the financial activities of the City of Clermont for
the fiscal year ended September 30, 2004. 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, 2004 by
$64,257,390 (net assets). Of this amount, $17,749,264 (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 $11,340,862 over the previous fiscal year.
• At September 30, the City of Clermont's governmental funds reported combined ending
fund balances of $8,679,180, an increase of $2,218,232 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 $4,207,296, which represents 47% 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 (the
City) 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 14 and 15 of the report.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Clermont that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City of Clermont
include general government, public safety, physical environment, transportation, economic
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
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 seven 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 five 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 19. Budgetary comparison schedules have been provided for
the Infrastructure Fund and the nonmajor funds at pages 20 and 58-63.
The basic governmental fund financial statements can be found on pages 16 - 20 of this report.
Proprietary'funds. The City of Clermont maintains two types of proprietary funds: enterprise and
internal service, which can be found on pages 21-25 of this report.
Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The City of Clermont uses enterprise funds to account for
water, sewer, sanitation and stormwater utilities.
Internal service funds are an accounting tool used to accumulate and allocate costs internally
among various functions. The City utilizes an internal service fund for its health insurance.
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Because services accounted for in the internal
rather than business -type functions, it has been
Ij vernment-wide financial statements.
service fund predominately benefit governmental
included within the governmental activities in the
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for water, sewer and sanitation which are all considered to be major funds. Data for the
Stormwater Fund is also included since it is the only 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 26 - 27 of this report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements.
The notes to financial statements can be found on pages 28 - 53 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor
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 54 -
66 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. Comparison to the prior year is not presented, as fiscal year 2003-04 is the
implementation year for GASB Statement #34. Comparative analysis will be provided in future
years when prior year information is available. For more detail see the Statement of Net Assets on
page 14.
Governmental
Business Typ
Activities
Activities
Total
2003-04
2003-04
2003-04
Current and other assets
$ 9,564,313
$33,832,262
$43,396,575
Capital assets
18,598,377
29,373,249
47,971,626
Total assets
28�90
63,205,511
91.368,201
Long-term liabilities outstanding
7,854,119
17,318,778
25,172,897
Other liabilities
609,329
1.328.585
1.937.914
Total liabilities
8,463,448
18,647,363
27,110,811
Net assets:
Invested in capital assets, net of
related debt
10,959,108
12,054,471
23,013,579
Restricted
893,540
22,601,007
23,494,547
Unrestricted
7.846,594
9.902.670
17,749,264
Total net assets
$19,699,242
$44,558,148
$64,257�390
5
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
The City's total net assets at September 30, 2004 was $64,257,390. Of the City's total net assets
$23,013,579 (36%) reflects its investment in capital assets (e.g., land, buildings, improvements,
infrastructure and equipment) less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City of Clermont's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities.
An additional portion of the City's total net assets, $23,494,547 (37%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City's
total net assets, $17,749,264 (28%) is unrestricted. These assets may be used at the City's
discretion in meeting its ongoing obligations to citizens and creditors.
The following is a summary of the City's governmental and business -type activities for fiscal year
2003-04 including revenues and expenses. Comparison to the prior year is not presented, as fiscal
year 2003-04 is the implementation year for GASB Statement #34. For more detail see the
Statement of Activities on page 15.
Governmental Business Tvpe
Activities Activities Total
2003-04 2003-04 2003-04
Revenues:
Program revenues -
Charges for services $ 3,029,359 $ 9,555,497 $12,584,856
Operating grants and contributions 591,189 104,798 695,987
Capital grants and contributions ?-095,189 7,095,189
General revenues -
Property taxes
3,371,172
-
3,371,172
Franchise and utility taxes
3,420,112
-
3,420,112
Intergovernmental
2,369,020
-
2,369,020
Investment income and
Miscellaneous
185.620
389A56
575.076
Total revenues
12.966,472
17.144.940
30,111,412
Expenses:
General government
2,336,912
-
2,336,912
Public safety
4,687,907
-
4,687,907
Physical environment
421,297
-
421,297
Transportation
1,055,914
-
1,055,914
Economic environment
31,791
-
31,791
Human services
131,633
-
131,633
Culture and recreation
1,742,527
-
1,742,527
Interest on long-term debt
350,146
-
350,146
Water
-
2,707,082
2,707,082
Sewer
-
3,423,209
3,423,209
Sanitation
-
1,616,487
1,616,487
Stormwater
-
265,645
265,645
Total expenses
10,758.127
8.012.423
18.770.550
311
MANAGEMENT'S DISCUSSION AND ANALYSIS —CONTINUED
Governmental
Business Type
Activities
Activities
Total
2003-04
2003-04
2003-04
Increase (Decrease) in Net Assets
Before Transfers
2,208,345
9,132,517
11,340,862
Transfers
384,944
(384,944)
-
Increase in Net Assets
2,593,289
8,747,573
11,340,862
Net Assets - Beginning
17.105.953
35,810.575
52.916,528
Net Assets —Ending
$19,699,242
$44w558,148
$64,257.390
Governmental activities - Governmental
activities increased the City of Clermont's net assets by
$2,593,289. Key elements of this increase are as follows:
• Property tax revenue increased by $713,356 (27.5%) during the year. Franchise fee
revenue increased $205,487 (22.3%) and utility tax revenue increased $209,509 (17.9%).
These increases are the result of growth and not a change in the City's tax rate structure.
• Recreation, police and fire impact fee collections totaled $1,592,057. This was an increase
of $167,708 (10.5%) over the previous fiscal year. This increase was primarily due to
growth.
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
$5,000,000 - $4,687,907
$4,500,000 -'
$4,000,000
$3,500,000 ;
$3,000,000
$2,500,000-=
I — -
$1, 742.527
$2,000,000 �''.•
165,498 —
$1,500,000 $1,055,914 017,583
-
f
$1,000,000 • 517,776 $584,721
so
$500,000 r -
.feral government Public safety Transportation/Public Culture and recreation Physical environment Interest on long-term
works and other debt
■Expenses ■Program revenues
7
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
In Intergovernment ■ Program revenues O Investment income & miscellaneous 0Other taxes ■ Property taxes
Property tax(
35 %
Other taxes
26%
Intergovemment
Program revenues
19%
ment income &
scellaneous
3%
Business -type activities - Business -type activities increased the City of Clermont's net assets by
$8,747,573. Key elements of this increase are as follows:
• Charges for services for business -type activities increased by $1,515,537 (19.5%), primarily
C �a fo increase in demand.
• Capital contributions totaled $6,939,270. This was an increase of $1,055,052 (17.9%) over
the previous fiscal year. This increase was primarily due to growth. These contributions
are impact fees paid by developers. The fees were adopted by the City to require new
development to pay its proportionate share of the capital costs necessary to accommodate
new development impacts on the City's water and sewer system.
• Grant revenue ($148,228) was realized for the Crystal Lake Stormwater project and FEMA
reimbursement ($112,489) for hurricanes in August and September of 2004.
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.
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Expenses and Program Revenues - Business -Type Activities
$9,000,000-
$8,000,000
$7,000,000
$5,722,827
$6,000,000 {
$5,000,000-
$4,000,000'
$2,707,
$3,000,000
$2,000,000 /
i
$1,000,000
$0�_ --
Water
$8,466,751
Sewer Sanitation
'Ei.penses 7Program Revenue
$265.645
Stormwater
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
❑Charges for Services OCa ital Grants and Contributions
Investment income &
Capital Grants and Contributions
41%
;harges for Services
56
6
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, 2004, the City of Clermont's governmental funds reported combined
ending fund balances of $8,679,180, an increase of $2,218,232 in comparison with the prior
year. Of the governmental funds combined ending fund balances, $7,617,865 (88%) 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.
The general fund is the chief operating fund of the City of Clermont. As of September 30, 2004,
the fund balance in the General Fund was $4,375,071, an increase of $1,097,880 in comparison
with the prior year. Of the total fund balance in the General Fund, $4,207,296 (96%) 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 47% of total general fund expenditures, while total fund
balance represents 49% of that same amount.
The fund balance of the general fund increased by $1,097,880 during fiscal year 2003-04. This
increase is primarily because actual revenues were higher than budgeted and expenditures in
most departments 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 2003-04, the fund balance of the infrastructure fund increased by
$524,089. 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 2004-05.
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, 2004, the City of Clermont's proprietary funds reported total net assets of
$44,558,148, an increase of $8,747,573 in comparison with the prior year. Of the proprietary
funds total net assets, $9,820,853 (22%) represents unrestricted net assets.
10
MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED
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, 2004, the City of Clermont's water fund reported total net assets of $15,005,834, an
increase of $2,755,245 in comparison with the prior year. This increase is primarily due to
servicing an expanded customer base. The residential customer base has increased from
10,529 customers in September 2003 to 12,751 as of September 2004. Impact fee collections
were also higher than anticipated due to large commercial development projects.
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, 2004, the
City of Clermont's sewer fund reported total net assets of $26,292,930, an increase of
$5,225,839 in comparison with the prior year. This increase is primarily due to servicing an
expanded customer base. The residential customer base has increased from 7,650 customers
in September 2003 to 9,217 in September 2004. Impact fee collections were also higher than
anticipated due to large commercial development projects.
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, 2004, the City of Clermont's sanitation fund
reported total net assets of $981,579, an increase of $215,299 in comparison with the prior
year. This was primarily due to capital equipment purchases that were carried forward to fiscal
year 2004-05.
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.
• Licenses and permits increased due to an interlocal agreement with Lake County to
provide the City with 15% of building and fire permit fees collected within the City's limits.
• Intergovernmental revenues, primarily half cent sales tax and communication service
tax, were higher than originally anticipated.
• General government expenditures were less than anticipated because of not purchasing
an automated permitting and planning system for the Planning Department. The
Planning Department is utilizing Lake County's permitting program.
• Culture and recreation expenditures were less than budgeted primarily due to
reconsideration of a library renovation project.
During the year, actual .:;venues were $CnO 380 more than budgeted_ revenue and actual
expenditures were $515,093 less than budgeted expenditures. However, actual expenditures
did exceed budgeted expenditures in the public safety function. This can be attributed in part to
high overtime expenses during three hurricanes that affected our area in August and
September.
11
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Capital Assets
The following is a summary of the City's capital assets, net of depreciation for governmental and
business -type activities for the current year. Comparison to the prior year is not presented, as
fiscal year 2003-04 is the implementation year for GASB Statement #34. Additional information
on the City of Clermont's capital assets can be found in Note 6 on pages 42 - 43 of this report.
Governmental
Business Type
Activities
Activities
Total
2003-04
2003-04
2003-04
Land
$ 4,274,427
$ 1,464,129
$ 5,738,556
Buildings
6,372,786
3,681
6,376,467
Improvements/infrastructure
4,974,043
25,113,699
30,087,742
Machinery and equipment
2,977,121
728,111
3,705,232
Construction in progress
-
2,063,629
2,063,629
Total
$18,598,377
$29,373,249
$47,971,626
The City of Clermont's investment in capital assets for its governmental and business -type
activities as of September 30, 2004, amounts to $47,971,626 (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 $1,546,696 (3.3%). Major capital asset events during the current fiscal
year included the following:
• Construction in progress related to the construction of two new water wells and the
Center Lake stormwater project.
• The acquisition of land to be used for a future community center.
Debt Administration
The following is a summary of the City's long-term debt for governmental and business -type
activity for the current year. Comparison to the prior year is not presented, as fiscal year 2003-
04 is the implementation year for GASB Statement #34. Additional information on long-term
debt can be found in Note 7 on pages 44 - 46 of this report.
Governmental
Activities
2003-04
Business Type
Activities Total
2003-04 2003-04
Bonds payable $6,575,000 $17,935,000 $24,510,000
Notes payable 1.064.269 - 1, 064, 269
7 639 2 $17,935,000 $25,574,269
12
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$25,574,269. This debt includes bonds payable and notes payable. The City of Clermont's
total debt increased by $293,489 (2%) during the current fiscal year. This is net of the increase
of an $800,000 note payable for acquisition of land for future recreation activities.
Next Year's Budget and Rates
As of September 30, 2004, the General Fund unreserved fund balance was $4,207,296. The
City appropriated $36,600 of this amount for spending in the 2004-05 fiscal year budget. It is
intended that this use of available fund balance will avoid the need to raise taxes or charges
during the 2004-05 fiscal year.
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.
13
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BASIC FINANCIAL STATEMENTS
This page intentionally left blank.
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2004
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
Activities
Activites
Total
$ 1,862,253
$ 554,913
$ 2,417,166
71107,098
8,553,223
15,660,321
79,108
943,351
1,022,459
25,350
69,441
94,791
429,895
112,489
542,384
(81,816)
81,816
-
142,425
73,444
215,869
-
1,035,015
1,035,015
-
22,013,385
22,013,385
45,063
45,063
-
350,122
350,122
4,274,427
3,527,758
7,802,185
14,323,950 25,845,491 40,169,441
28,162,690 63,205,511 91,368,201
609,329
836,129
1,445,458
-
492,456
492,456
880,707
100,000
980,707
6,973,412
17,218,778
24,192,190
8,463,448
18,647,363
27,110,811
10,959,108
12,054,471
23,013,579
-
22,601,007
22,601,007
85,333
85,333
345,787
-
345,787
462,420
-
462,420
7,846,594
9,902,670
17,749,264
$ 19,699,242
$ 44,558,148
$ 64,257,390
The accompanying Notes to Financial Statements are an integral part of these statements.
14
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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
Total fund balances
Total liabilities and fund
balances
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2004
Infrastructure
Other
Total
Special
Governmental
Governmental
General
Revenue
Funds
Funds
$ 227,046
$ 254,310
$ 1,266,498
$ 1,747,854
4,215,366
824,941
1,865,911
6,906,218
79,108
-
-
79,108
25,350
-
-
25,350
325,867
104,028
-
429,895
142,425
-
-
142,425
$ 5,015162
$ 1,183,279
$ 3,132,409
$ 9,330,850
$ 157,160
$ -
$ 11,579
$ 168,739
277,149
-
-
277,149
3,693
-
-
3,693
202,089
-
-
202,089
640,091
-
11,579
651,670
167,775 - - 167,775
- 85,333 85,333
- 345,787 345,787
- 462,420 462,420
4,207,296 - - 4,207,296
- 1,183,279 2,227,290 3,410,569
4,375,071 1,183,279 3,120,830 8,679,180
$ 5,015,162 $ 1,183,279 $ 3,132,409
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
18,598,377
Other long-term assets are not available to pay for current period
expenditures and, therefore, are deferred in the funds
202,089
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.
156,170
Accrued interest payable is not due in the current period and therefore
is not reported in the funds
(82,455)
Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds
(7,854,119)
Net assets of governmental activities
$ 19,699,242
The accompanying Notes to Financial Statements are an integral part of these statements.
16
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
For The Year Ended September 30, 2004
Infrastructure Other Total
Special Governmental Governmental
General Revenue Funds Funds
Revenues:
Taxes
$ 6,724,843
$ -
$ 66,441
$ 6,791,284
Licenses and permits
466,422
-
-
466,422
Intergovernmental revenues
1,524,522
1,233,598
-
2,758,120
Charges for services
380,669
-
-
380,669
Fines and forfeitures
124,755
-
-
124,755
Impact fees/special assessments
-
-
1,592,057
1,592,057
Investment income
68,638
10,979
27,746
107,363
Miscellaneous
493,208
-
48,000
541,208
Total revenues
9,783,057
1,244,577
1,734,244
12,761,878
Expenditures:
Current:
General government
1,804,024
2,500
-
1,806,524
Public safety
4,518,083
-
163,062
4,681,145
Physical environment
292,898
-
-
292,898
Transportation
1,064,504
-
-
1,064,504
Economic environment
31,791
-
-
31,791
Human services
139,378
-
-
139,378
Culture and recreation
1,041,554
107,713
1,532,573
2,681,840
Debt service:
Principal retirement
68,815
-
437,696
506,511
Interest and fiscal charges
1,902
-
265,789
267,691
Capital outlay:
General government
-
-
256,308
256,308
Total expenditures
8,962,949
110,213
2,655,428
11,728,590
Excess (Deficiency) of
Revenues Over Expenditures
820,108
1,134,364
(921,184)
1,033,288
Other Financing Sources (Uses)
Note issued
-
-
800,000
800,000
Transfers in
390,776
-
825,753
1,216,529
Transfers out
(113,004)
(610,2_75)
(108,306)
(831,585)
Net other financing sources
(uses)
277,772
(610,275)
1,517,447
1,184,944
Net Change in Fund Balances
1,097,880
524,089
596,263
2,218,232
Fund Balances - Beginning
3,277,191
659,190
2,524,567
6,460,948
Fund Balances - Ending
$ 4,375,071
$ 1,183,279
$ 3,120,830
$ 8,679,180
The accompanying Notes to Financial Statements are an integral part of these statements.
17
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, 2004
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)
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.
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.
Revenues in the statement of activites that do not provide current
financial resources are not reported as revenues in the funds
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.
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.
Change in net assets of governmental activities (page 15Y
$ 2,218,232
418,301
(293,489)
202,089
197,936
(149,780)
$ 2,593,289
The accompanying Notes to Financial Statements are an integral part of these statements.
18
CITY OF CLERMONT, FLORIDA
STATEME
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
GENERAL FUND
)F REVENUES, EXPENDITI
ND BALANCE - BUDGET )
D CHANGES IN
For The Year Ended September 30, 2004
Excess (Deficiency) of Revenues
Budgeted Amounts
Original Final
Variance With
Final Budget
Actual Positive
Amounts (Negative)
$ 6,134,000
$ 6,134,000
$ 6,724,843 $
590,843
364,300
364,300
466,422
102,122
1,216,700
1,216,700
1,524,522
307,822
392,923
392,923
380,669
(12,254)
110,800
110,800
124,755
13,955
78,100
78,100
68,638
(9,462)
320,120
577,854
493,208
(84,646)
8,616,943
8,874,677
9,783,057
908,380
1,867,170
1,912,444
1,804,024
108,420
4,412,919
4,457,394
4,518,083
(60,689)
341,635
354,920
292,898
62,022
885,454
1,149,644
1,064,504
85,140
26,660
33,660
31,791
1,869
158,975
158,975
139,378
19,597
1,349,321
1,349,321
1,041,554
307,767
60,069
60,069
68,815
(8,746)
1,615
1,615
1,902
(287)
9,103,818
9,478,042
8,962,949
515,093
Over Expenditures (486,875) (603,365) 820,108 1,423,473
Other Financing Sources (Uses)
Transfers in 410,645 410,645 390,776 (19,869)
Transfers out (112,897) (112,897) (113,004) (107)
Net other financing sources (uses) 297,748 297,748 277,772 (19,976)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
(189,127) (305,617) 1,097,880 1,403,497
3,277,191 3,277,191 3,277,191
$ 3,088,064 $ 2,971,574 $ 4,375,071 $ 1,403,497
The accompanying Notes to Financial Statements are an integral part of these statements.
19
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, 2004
Revenues:
Intergovernmental revenues
Investment income
Total revenues
Expenditures:
General government
Physical environment
Transportation
Culture and recreation
Total expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Budgeted Amounts
Original Final
Variance With
Final Budget
Actual Positive
Amounts (Negative)
$ 898,400 $
898,400
$ 1,233,598
$ 335,198
20,724
20,724
10,979
(9,745)
919,124
919,124
1,244,577
325,453
120,000
120,000
2,500
117,500
35,000
35,000
-
35,000
77,824
77,824
-
77,824
250,550
250,550
107,713
142,837
483,374
483,374
110,213
373,161
435,750
435,750
1,134,364
698,614
Other Financing Sources (Uses)
Transfers out (460,494) (609,636) (610,275) (639)
Net other financing sources (uses) (460,494) (609,636) (610,275) (639)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
(24,744) (173,886) 524,089 697,975
659,190 659,190 659,190 -
$ 634,446 $ 485,304 $ 1,183,279 $ 697,975
The accompanying Notes to Financial Statements are an integral part of these statements.
20
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CITY OF CLERMONT, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2004
Total Employee
Pension Funds
Assets:
Investments (at fair value) $ 7,275,709
Liabilities:
Accounts payable
Net Assets:
Held in trust for pension benefits $ 7,275,709
The accompanying Notes to Financial Statements are an integral part of these statements.
26
CITY OF CLERMONT, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2004
Additions:
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Net increase in fair value of investments
Less investment expense
Net investment income
Total Employee
Pension Funds
$ 330,757
48,359
261,318
640,434
498,794
498,794
Total additions 1,139,228
Deductions:
Benefits/distributions 367,313
Administrative expenses 34,365
Total deductions 401,678
Change in Net Assets 737,550
Net Assets - Beginning 6,538,159
Net Assets - End $ 7,275,709
The accompanying Notes to Financial Statements are an integral part of these statements.
27
NOTES TO FINANCIAL STATEMENTS
This page intentionally left blank.
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2004
Note 1 - Summary of Significant Accounting Policies:
A. Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located
in Lake County. The City of Clermont was incorporated under State law in December 1916
and operates under the council-manager form of government under its charter adopted
pursuant to H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative
branch of the City is composed of a Mayor and four (4) members elected Council. The City
Council is responsible for the establishment and adoption of policy. The execution of such
policy is the responsibility of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has
considered all potential component units. The definition of the reporting entity is based
primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially
accountable for legally separate organizations if its officials appoint a voting majority of an
organization's governing body, and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to, or to impose
specific financial burdens on, the primary government. A primary government may also be
financially accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects or activities of, or the level of services performed or provided
by, the organization. A financial benefit or burden relationship exists if the primary
government (a) is entitled to the organizations' resources; (b) is legally obligated or has
otherwise assumed the obligation to finance the deficits of, or provide financial support to, the
organization; or (c) is obligated in some manner for the debt of the organization. In applying
the above criteria, the City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a
dependent taxing district established in accordance with Chapter 163, Part III, Florida
Statutes. Notification to affected taxing agency was done in compliance with Chapter
163.346, Part III, Florida Statutes. The incremental annual increase in tax over the base years
will be used to fund projects designed to enhance and improve the described area. The City
Council, being the duly elected governmental body for the designated area, passed Resolution
97-950, which established the City of Clermont as the Redevelopment Agency for the purpose
of carrying out the community redevelopment programs and plans within the area. Through
Ordinance 359-M the City established the Community Redevelopment Trust Fund to account
for all transactions generated by this special revenue fund.
m
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
B. Government -Wide and Fund Financial Statements
The City was required to implement Government Accounting Standards Board (GASB)
Statement 34 that requires a change in the reporting format. The government -wide
financial statements along with the notes to the financial statements comprise the basic
financial statements. This approach differs from the previous reporting model in that the
fiduciary funds are not included. As a part of a phased implementation of this Statement,
there is a new reporting requirement regarding the government's infrastructure (roads,
bridges, traffic signals, etc.). Infrastructure assets acquired prior to October 1, 2003 have
not been recorded since GASB 34 does not require a city the size of Clermont to
retroactively record infrastructure.
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.
29
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
The General Fund is the government's primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The Infrastructure Special Revenue Fund was established to account for the
proceeds of the Local Government Infrastructure Surtax. The proceeds and interest
accrued thereto, by law are only to be used to finance, plan and construct
infrastructure.
30
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Non -Major Governmental Fund Types
Special Revenue Funds account for specific revenue sources that are restricted by
law or administrative action to expenditures for specific purposes.
Debt Service Fund is used to account for the accumulation of resources for, 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 Proprietary Funds
Water Fund is used to account for the operations of the City's water system, which is
financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
Sewer Fund is used to account for the operations of the City's sewer system, which
is financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
Sanitation Fund is used to account for the fiscal activities of the City's refuse
collection and disposal operation.
Non -Major Proprietary Funds
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the
City's stormwater drainage operation, as well as the funding and payment of related
debt.
Internal Service Fund is used to account for the costs of group insurance which are
charged to other departments on a cost reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general
employees retirement plans which accumulate resources for pension benefit
payments to qualified employees.
31
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the City's water, sewer, sanitation and stormwater utility
funds are charges to customers for sales and services. The City also recognizes as
operating revenue the meter fees intended to recover the cost of connecting new customers
to the system. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's
policy to use restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The government's cash and cash equivalents are considered to be cash on
hand, demand deposits, and short-term investments with original maturities of
three months or less from the date of acquisition.
32
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
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.
2. Receivables and Payables
Activity between funds that are representative of lending/borrowing
arrangements outstanding at the end of the fiscal year are referred to as either
"due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non -current portion of interfund loans).
All other outstanding balances between funds are reported as "due to/from other
funds." 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.
33
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
3. Inventories and Prepaid Items- (Continued)
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.
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
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
at the date of donation.
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).
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business -type activities is included as part of the capitalized value of the assets
constructed.
34
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
5. Capital Assets (Continued) -
Capital assets of the City are depreciated using the straight line method over the
following estimated useful lives:
Assets
Years
Buildings
10-50
Improvements
15-50
Infrastructure
30-50
Equipment
3-15
6. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. All vacation pay is accrued when incurred in the
government -wide and proprietary financial statements. A portion of sick pay is
accrued for employees with at least ten (10) years of service. A liability for these
amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. For
governmental activities, compensated absences 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.
35
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
Note 2 - Reconciliation of Government -Wide and Fund Financial Statements:
A. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide
Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund
balances includes a reconciliation between net changes in fund balances - total
governmental funds and changes in net assets of 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 $418,301 difference are as
follows:
Capital outlay $ 2,423,510
Depreciation expense 2,0—� 05.209)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities $ 418.301
36
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 2 - Reconciliation of Government -Wide and Fund Financial Statements (Continued):
A. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide
Statement of Activities (Continued)
Another element of that reconciliation states that "the issuance of long-term debt (e.g.,
bonds, leases) provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net assets." The
details of this $293,489 difference are as follows:
Debt issued or incurred:
Loan proceeds $(800,000)
Principal repayment 506.511
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities 293 489)
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 $ (67,325)
Accrued interest payable f 82 455)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities 14 780)
Note 3 - Stewardship, Compliance, and Accountability:
Excess of Expenditures over Appropriations —
For the year ended September 30, 2004, expenditures exceeded appropriations in the
public safety department of the general fund by $60,689. In addition, expenditures
exceeded appropriations in the Recreation Impact Fee Special Revenue Fund by
$777,323 and in the 2002 Public Improvement Debt Service Fund by $450. These
overexpenditures were funded by greater than anticipated revenues and available fund
balance.
37
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 3 - Stewardship, Compliance, and Accountability (Continued):
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.
IN
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 4 - Deposits and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $3,451,551 and the bank
balance was $3,572,752. Petty cash fund of $630 are not on deposit with a financial
institution. All bank deposits were covered by Federal Depository Insurance or held in
banks that are members of the State of Florida's Collateral Pool as specified under Florida
law. This limits local government deposits to "qualified public depositories." The State of
Florida Collateral Pool is a multiple financial institution pool with the ability to assess its
members for collateral shortfalls if a member institution fails. For this reason, the City
considers its deposits insured or collateralized.
Investments
Investments in all fund types are stated at fair value, which is the amount for which an
investment could be exchanged in a current transaction between willing parties, other than
in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City's investment policies are governed by state statute and city ordinance.
Authorized investments are:
(a) The Local Government Surplus Funds Trust (SBA).
(b) SEC registered money market funds.
(c) Interest -bearing time deposits or savings accounts in qualified public depositories.
(d) Direct obligations of the U.S. Treasury.
(e) Federal agencies and instrumentalities.
(f) Securities of, or other interests in, any open-end or closed -end management -type
investment company or investment trust registered under the Investment Company
Act of 1940.
(g) Repurchase Agreements.
(h) Other investments authorized by ordinance.
39
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 4 - Deposits and Investments (Continued):
Investments Continued
The assets of the City's police and firefighters pension funds, as well as the general
employees defined benefit pension fund, are invested in the pooled investment fund for
the Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund
consist of corporate bonds and stocks and cash equivalents. The fund is stated at fair
value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account is stated at fair value as provided by the Florida
Municipal Pension Fund.
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.
The following levels of credit risk apply to the investments of the City:
Category 1
Insured or registered, held by the City or its agent in the City's name.
Category 2
Uninsured or unregistered, held by a counterparty's trust department or agent in the City's
name.
Category 3
Uninsured and unregistered, held by a counterparty or its trust department or agent, but
not in the City's name.
40
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 4 - Deposits and Investments (Continued):
Investments JContinued)
Investments in the State Board of Administration Local Government Investment Pool and
Mutual Funds are not required to be categorized since these investments are in pooled
investment funds and therefore not evidenced by securities that exist in physical or book
entry form. The following schedule shows the City's investments at September 30, 2004,
classified where appropriate as to their respective level of credit risk:
Credit
Risk
Fair Value
Category
State Board of Administration Fund $17,250,113
N/A
U.S. Government Securities 20,423,593
2
Pension Mutual Funds 7,275,709
N/A
$44,949,415
Note 5 - Receivables:
Receivables as of year end for the City's individual major funds and nonmajor funds, including
the applicable allowances for uncollectible accounts, are as follows:
General
Water
Sewer
Sanitation
Nonmajor
Fund
Fund
Fund
Fund
Funds
Total
Receivables:
Accounts
$16,974
$318,943
$271,425
$172,943
$204,036
$ 984,321
Taxes and Licenses
32,799
-
-
-
-
32,799
Other
29,668
20,069
-
-
-
49,737
Less allowance for
uncollectible
accounts
(333)
(18,267)
(12,131)
(9,896)
(3,771)
(44,398)
$79,108 $320,745 IM3 047 2 0 265 $1.022,459
41
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 6 - Capital Assets:
Capital asset activity for the year ended September 30, 2004 was as follows:
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
Balance
tRestated) Increases Decreases
$ 2,759,586 $ 1,514,841 $ -
72.933 207,034 (279,967)
2,832,519 1, 721� (279,96 7)
Ending
Balance
$ 4,274,427
4,274.427
8,786,904
207,034
- 8,993,938
9,454,869
93,875
- 9,548,744
4.375.466
680,693
- 5.056.159
22� , 23g
981, 602
- 23.598 841
Less accumulated depreciation for:
Buildings
(2,054,842)
(566,310)
- (2,621,152)
Improvements/infrastructure
Machinery and equipment
(3,744,681)
f L 1.470,159)
(830,020)
(608 879)
- 4,574,701
2 079 038
- —
Total accumulated depreciation
7,269,682)
_ 2.Ot 05,209)
- _[9.274,891)
Total capital assets, being
depreciated, net
Governmental activities capital
assets, net
15, 347, 557
11,023,607) 023.607) _ - 14.3
23950
9 26 279 9 7) $18,598,377
42
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 6 - Capital Assets (Continued):
Business -type activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital assets, being depreciated:
Buildings
Improvements
Machinery and equipment
Total capital assets, being
depreciated
Less accumulated depreciation for:
Beginning Ending
Balance Increases Decreases Balance
$ 1,464,129 $ - $ - $ 1,464,129
567,346 1,832,861 3_{ 36.578) 2,063.629
2.031.475 1,832,861 (336,57 8) 3,527,758
41,324 - - 41,324
33,418,001 438,593 - 33,856,594
2.270.213 206.488 - 2.476,701
35,729.538 645,081 - 36,374,619
Buildings
(35,701)
(1,942)
- (37,643)
Improvements
(7,908,159)
(834,736)
- (8,742,895)
Machinery and equipment
[ 1,572,299)
(176,291)
- (1,748,590)
Total accumulated depreciation
9 516 159)
(1,012,969)
- 10 529.128)
Total capital assets, being
depreciated, net 26 2213 379 (367,888) - 25,845,491
Business -type activities capital
assets, net $2$244,854 $1,464,973 3 57) $29,373,249
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 483,948
Public safety 481,767
Physical environment/transportation 316,418
Culture and recreation 723,076
Total depreciation expense - governmental activities 2,0 55.209
Business -type activities:
Water 307,476
Sewer 604,849
Sanitation 65,919
Stormwater 34,725
Total depreciation expense - business -type activities $1,012,969
43
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 7 - Long -Term Debt:
Bonds Pa able
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 Maturit Amount 2004
Public Improvement 1.75 - 4.6%
Revenue Bonds,
Series2002 (6/1 & 12/1)
Business -Type Activities
Water and Sewer Revenue 4.4 - 5.25%
and Refunding Bonds,
Series 2000 (6/1 & 12/1)
12/01 /2003
to
12/01/2017 $6,965 000 $6,575.000
12/01 /2004
to
12/01/2030 $17,935,000 $17,935,000
Governmental Activities Business -Type Activities
Year ending September 30 Principal Interest Principal Interest
2005
$ 395,000
$ 247,362
$ 100,000
$ 932,128
2006
405,000
238,969
150,000
927,727
2007
415,000
228,338
230,000
920,978
2008
425,000
216,406
390,000
910,627
2009
440,000
202,806
410,000
892,688
2010-2014
2,455,000
756,819
2,355,000
4,157,087
2015-2019
2,040,000
213,210
3,000,000
3,512,513
2020-2024
-
-
3,870,000
2,639,644
2025-2029
-
-
5,025,000
1,484,844
2030-2031
_
-
2.405.000
195.650
_
Total
$6,575,000
$2 103.910
$17 935,000
$16 573,886
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 7 - Long -Term Debt (Continued):
Notes Pa able
The City has notes payable for governmental activities only. During 2004, the City entered
into an agreement to purchase land for a new community center. The note payable of
$800,000 is due in two installments of $400,000 on November 21, 2004 and 2005. There is
no interest payable. Notes payable outstanding at year end are as follows:
Balance
Original Amount September 30 2004
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 City's computer system and
purchase a fire truck. $397,000 $ 43,372
Capital Improvement Notes, Series 1999 due to
SunTrust Bank in ten annual installments of
$40,264 (including interest) beginning December
2000. The notes bear an interest rate of 5.742%.
The loan was obtained to purchase a fire truck. 300,000 199,605
Note payable to Bank of America, dated May 23,
1980, due in 24 annual installments of $4,417
each, starting May 23, 1982, plus interest at
5.5% per annum, secured by the gasoline tax
revenues of the City. 159,859 4,979
Note payable to GMAC in twelve quarterly
installments of $2,440 each, starting July 2003,
including interest at 4.65%, secured by vehicle. 27,500 16,313
Note payable dated November 21, 2003, due in
two annual installments of $400,000 each,
starting November 21, 2004, secured by land. 800,000 800,000
Total: $1 064, 269
45
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 7 - Long -Term Debt (Continued):
Annual requirements to amortize outstanding notes payable for governmental activities as of
September 30, 2004 are as follows:
Year Ending
Governmental Activities
September 30
Princi al
Interest
2005
$ 464,213
$ 8,603
2006
459,711
4,221
2007
32,205
7,134
2008
34,054
5,232
2009
36,009
3,220
2010-2014
38,077
_ 1,093
Total:
1 4 2
2 50
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2004 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bond payable -
Revenue bonds
$ 6.965.000
$
90 3000)
$ 6.575.000
$395,000
Notes payable-
Library Note
9,396
-
(4,417)
4,979
4,979
Parks Mortgage Note
-
800,000
-
800,000
400,000
Revenue Note,
Series 1999
226,843
-
(27,238)
199,605
28,802
Notes Payable
144,541
_ -
__j84.856)
59.685
30,426
Total notes
payable
380,780
800.000
( 116,511)
1,064.269
464,207
Compensated absences
_
147.525
_ 67.325
-
_ 214.850
21,500
Governmental activity
long-term liabilities
7 493.305
7 2)
$ 7.854.119
8 7 7
Business -type activities:
Bonds payable -
Revenue bonds
17,935,000
-
-
17,935,000
100,000
Less deferred amount:
Issuance discount
_ {654,787)
-
38 565
!616.222)
-
Business -type activity
long-term liabilities
S17��
��_
$ 38,565
$17 318.778
100 00
W.
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
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, 2004, $1,500,000 of bonds
outstanding are considered defeased.
Note 9 - Interfund Receivables, Payables and Transfers:
The composition of due to/from other funds at September 30, 2004 is as follows:
Receivable Fund Amount Payable Fund Amount
Water Fund $1,003,771 Sewer Fund $1 003,771
Interfund transfers for the year ended September 30, 2004 consisted of the following:
Transfer In _
Non -major
General
Governmental
Fund
Funds
Total
Transfer Out:
General Fund
$ -
$113,004
$ 113,004
Infrastructure Fund
-
610,275
610,275
Non -major Governmental
Funds
5,832
102,474
108,306
Water Fund
374,728
-
374,728
Sewer Fund
5,108
-
5,108
Sanitation Fund
3,405
-
3,405
Nonmajor Business -
Type Funds
_ 1,703
-
1,703
Total
$390,776
$825,753
$1,216,529
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
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
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.
Summary of Significant Accounting Policies
Basis of Accounting — The Plans' financial statements are prepared using the accrual basis
of accounting. Plan member contributions are recognized in the period in which the
contributions are due. Employer contributions to each Plan are recognized when due and the
employer has made a formal commitment to provide the contributions. Benefits and refunds
are recognized when due and payable in accordance with the terms of each plan.
Method Used to Value Investments — Investments are reported at fair value. Short-term
investments are reported at cost, which approximates fair value. Securities traded on a
national or international exchange are valued at the last reported sales price at current
exchange rates. Investments that do not have an established market are reported at
estimated fair value.
Publicly available financial reports for each plan, that include detailed actuarial data, can be
obtained from the City's Administrative Services Department.
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
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.
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, 2004 was as
follows:
General
Police
Membership and Provisions
Employees
Officers
Firefighters
Members
Retirees and beneficiaries
13
4
1
currently receiving benefits
Vested terminated employees
-
4
6
Active participating employees
=
30
36
13
38
43
Funding Policy - The City's actuarially determined contribution rate per the October 1,
2003 actuarial valuations is 0% for general employees, 20.1 % for police officers and 16.1 %
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, 2004
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, 2004.
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, 2003. 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
General Em to ees Police Officers Firei,,ic hters
Annual Percentage Annual Percentage Annual Percentage
Year Ended Required of ARC Required of ARC Required of ARC
September 30 Contribution Contributed Contribution Contributed Contribution Contributed
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%
W
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
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, 2003. 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
Firefighters
Aggregate Cost
N/A
N/A
Market Value
7.5%
5.5%
N/A
As noted above, the General Employees and Firefighters Plan 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.
There were several factors in 2003 and 2004 that significantly increased the annual required
contribution for police officers and firefighters. Both future and past benefit accruals were
upgraded to a higher percentage per year of credited service. Also, the required
contribution percentage increased because the actual investment return was below the
actuarial assumed rate of 7.5%.
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. 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 2004 was $3,773,405; the City's total payroll for
City employees was $6,143,825.
The City contributes annually to the pension account of each active participant an amount
equal to eight percent (8%) 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
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 10 - Retirement Plans (Continued):
The actual contribution made by the City for fiscal year 2004 was $238,759.
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.
Claims liabilities, beginning of year
Incurred claims
Payments on claims
Claims liabilities, end of year
Note 13 - Commitments:
2004 2003 2002
$ 62,770 $ 142,709 $ 59,815
894,015 931,951 689,030
(879,49 2) f 1.011,890) 606 136)
$ 77.293 62,77 $0�
At September 30, 2004 the City had committed to the following construction projects:
Sunburst Lane/Lakeview
Wells No. 5 and No. 4
Contracted Amount
$342,150
Cost Incurred to Date
$101,808
52
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2004
Note 14 - Commitments and Contingencies:
Litigation - The City is engaged in various liability claims incidental to the conduct of its
general government operations at September 30, 2004. 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.
53
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
This page intentionally left Flank.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Recreation Impact Fees - This fund was established to account for recreation
Fund 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 - This fund is used to account for funds administered by
Fund Downtown Clermont Redevelopment Agency. The
agency is authorized to use the funds to finance
community redevelopment projects within the downtown
area.
Debt Service Funds
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 Funds
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.
Permanent Fund
Cemetery Perpetual Care - This fund is used to account for monies provided by
Fund 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
Assets:
Cash and cash equivalents
Investments
Total assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Total liabilities
Fund Balances:
Reserved
Unreserved
Total fund balances
Total liabilities and fund balances
September 30, 2004
Special Revenue
Recreation Police Fire
Impact Impact Impact Community
Fees Fees Fees Redevelopment
$ 244,132 $ 328,549 $ 180,645 $ 85,333
742,560 534,914 196,490 -
$ 986,692 $ 863,463 $ 377,135 $ 85,333
- - - 85,333
986,692 863,463 377,135 -
986,692 863,463 377,135 85,333
$ 986,692 $ 863,463 $ 377,135 $ 85,333
54
Special
Revenue
$ 838,659 $
1,473,964
Debt Capital
Service Projects
Permanent
Fund
Total
Cemetery
Nonmajor
Perpetual
Governmental
Care
Funds
345,787 $ 11,579 $ 70,473 $ 1,266,498
_ - 391,947 1,865,911
$ 2,312,623 $ 345,787 $ 11,579 $ 462,420 $ 3,132,409
$ _ $ - $ 11,579 $ - $ 11,579
_ - 11,579 - 11,579
85,333 345,787 - 462,420 893,540
2,227,290 - - - 2,227,290
2,312,623 345,787 - 462,420 3,120,830
$ 2,312,623 $ 345,787 $ 11,579 $ 462,420 $ 3,132,409
55
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended September 30, 2004
Revenues:
Taxes
Impact fees/special assessments
Investment income
Misellaneous
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
Other Financing Sources (Uses):
Note issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
Special Revenue
Recreation
Police
Fire
Impact
Impact
Impact
Community
Fees
Fees
Fees
Redevelopment
$ _
$ _
$ _
$ 66,441
926,288
319,228
346,541
-
5,738
9,302
3,476
709
350,017 67,150
- 95,389 67,673 -
1,532,573 - -
47,696 -
14,564 -
1,532,573 95,389 129,933 -
(600,547) 233,141 220,084 67,150
800,000 - - -
36,149
(102,474) -
800,000 - (102,474) 36,149
199,453 233,141 117,610 103,299
787,239 630,322 259,525 (17,966)
$ 986,692 $ 863,463 $ 377,135 $ 85,333
56
Permanent
Fund
Total
Special
Cemetery
Nonmajor
Revenue
Debt
Capital
Perpetual
Governmental
Total
Service
Projects
Care
Funds
$ 66,441
$ -
$ -
$ -
$ 66,441
1,592,057
-
-
-
1,592,057
19,225
1,822
867
5,832
27,746
_
-
-
48,000
48,000
1,677,723
1,822
867
53,832
1,734,244
163,062
-
-
-
163,062
1,532,573
-
-
-
1,532,573
47,696
390,000
-
-
437,696
14,564
251,225
-
-
265,789
_
-
256,008
300
256,308
1,757,895
641,225
256,008
300
2,655,428
(80,172)
(639,403)
(255,141)
53,532
(921,184)
800,000
-
-
-
800,000
36,149
640,462
149,142
-
825,753
(102,474)
-
-
(5,832)
(108,306)
733,675
640,462
149,142
(5,832)
1,517,447
653,503
1,059
(105,999)
47,700
596,263
1,659,120
344,728
105,999
414,720
2,524,567
$ 2,312,623
$ 345,787
$ -
$ 462,420
$ 3,120,830
57
CITY OF CLERMONT, FLORIDA
RECREATION IMPACT FEE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTI
For The Year Ended September 30, 2004
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
Other Financing Sources (Uses):
Note issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts (Negative)
500,000 500,000 926,288 426,288
4,500 4,500 5,738 1,238
504,500 504,500 932,026 427,526
755,250 755,250 0 1,532,573 (777,323)
755,250 755,250 1,532,573 (777,323)
(250,750) (250,750) (600,547) (349,797)
800,000 800,000
800,000 800,000
(250,750) (250,750) 199,453 450,203
787,239 787,239 787,239
$ 536,489 $ 536,489 $ 986,692 $ 450,203
6ru, t ii. I P Lo hrj or, s 00114 W A) Ar -f ACCPvf-J
9.1
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, 2004
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
Other Financing Sources (Uses):
Note issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
Budgeted Amounts
Original Final
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
230,000
230,000
319,228
89,228
8,750
8,750
9,302
552
238,750
238,750
328,530
89,780
103.307
103,307
95,389
7,918
95,389
7,918
103,307
103,307
135,443
135,443
233,141
97,698
97,698
233,141
135,443
135,443
630,322
630,322
630,322
-
$ 765,765 $
765,765 $
863,463 $
97,698
59
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, 2004
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
Other Financing Sources (Uses):
Note issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
Variance with
Budgeted Amounts
Final Budget -
Actual
Positive
Original
Final
Amounts
(Negative)
230,000
230,000
319,228
89,228
8,750
8,750
9,302
552
238,750
238,750
328,530
89,780
103,307
103,307
95,389
7,918
103,307
95,389
7,918
103,307
135,443
135,443
233,141
97,698
135,443
135,443
97,698
233,141
630,322
630,322
630,322
-
$ 765,765
$ 765,765
$ 863,463
$ 97,698
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, 2004
Variance with
Budgeted Amounts
Final Budget -
Actual
Positive
Original Final
Amounts
(Negative)
Revenues:
$ 67,158 $ 67,158
$ 66,441
$ (717)
Taxes
Impact fees/special assessments
709
409
Investment income
300 300
67,458 67,458
67,150
(308)
Total revenues
Expenditures:
Current:
Public safety -
Culture and recreation - -
Debt service:
Principal retirement - -
Interest and fiscal charges -
Capital outlay: 56,791
General government 56,791 56,791 -
Total expenditures 56,791 56,791 - 56,791
Excess (Deficiency) of Revenues
10,667
10,667
67,150
56,483
Over Expenditures
Other Financing Sources (Uses):
_
Note issued
Transfers in
36,148
36,148
36,149
1
Transfers out
Total other financing sources (uses)
-
1
36,148
36,148
36,149
Net Change in Fund Balances
46,815
46,815
103,299
56,484
Fund Balances - Beginning
(17,966)
(17,966)
(17,966)
-
Fund Balances - Ending $
28,849 $
28,849 $
85,333 $
56,484
61
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, 2004
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
Other Financing Sources (Uses):
Note issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts (Negative)
1,200 1,200 1,822 622
1,200 1,200 1,822 622
390,000
390,000
390,000
-
250,775
250,775
251,225
(450)
641,225
(450)
640,775
640,775
(639,575)
(639,575)
(639,403)
172
639,575
639,575
640,462
887
639,575
639,575
640,462
887
1,059
344,728 344,728 344,728 -
$ 344,728 $ 344,728 $ 345,787 $ 1,059
62
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, 2003
Revenues:
Taxes
Impact fees/special assessments
Investment income
Total revenues
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
Other Financing Sources (Uses):
Note issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
Budgeted Amounts
Original Final
- 867
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
867 -
256,008 256,008
256,008 256,008
(255,141) (255,141)
- 149,142 149,142
149,142 149,142
- (105,999) (105,999) -
105,999 105,999 105,999 -
$ 105,999 $ - $ - $
63
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FIDUCIARY FUNDS
lemsion Trust Funds
General Employees' - This fund is used to account for the accumulation of
Pension 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 Trust - This fund is used to account for the accumulation of
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.
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CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
Assets:
Investments
Liabilities:
Accounts payable
Net Assets Held in Trust
for Pension Benefits
September 30, 2004
General Emoloy ees Police Totals
Defined Defined Officers Firefighters Employee
Benefit Contribution Pension Trust Pension Trust Pension Funds
$ 833,942 $ 2,065,451 $ 3,164,744 $ 1,211,572 $ 7,275,709
833,942 $ 2,065,451 $ 3,164,744 $ 1,211,572 $ 7,275,709
64
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2004
General Employees Police Total
Defined Defined Officers Firefighters Employee
Benefit Contribution Pension Trust Pension Trust Pension Funds
Additions:
Contributions:
Employer $ 4,867 $ 238,759 $ 87,131 - $ 330,757
Plan members - - 40,030 8,329 48,359
State - - 167,661 93,657 261,318
Total contributions 4,867 238,759 294,822 101,986 640,434
Investments income:
Net increase in fair value 61,697 159,305 202,162 75,630 498,794
Less investment expense - - - - -
Net investment income 61,697 159,305 202,162 75,630 498,794
Total additions 66,564 398,064 496,984 177,616 1,139,228
Deductions:
Benefits/distributions
90,394
190,375
84,819
1,725
367,313
Administrative expenses
5,257
11,463
10,109
7,536
34,365
Total deductions
95,651
201,838
94,928
9,261
401,678
Change in Net Assets
(29,087)
196,226
402,056
168,355
737,550
Net Assets Held in Trust for
Pension Benefits :
Beginning of Year 863,029 1,869,225 2,762,688 1,043,217 6,538,159
End of Year 833,942 $ 2,065,451 $ 3,164,744 $ 1,211,572 $ 7,275,709
65
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
This page intentionally left blank.
CITY OF CLERMONT, FLORIDA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
For The Year Ended September 30, 2004
Improvements/ Machinery/
Land Buildings Infrastructure Equipment Total
General Government
$ 170,115 $
5,578,867
$ -
$ 1,144,975
$ 6,893,957
Public Safety
183,458
1,644,812
-
2,911,396
4,739,666
Physical Environment/
Transportation
119,494
728,159
4,088,728
417,201
5,353,582
Culture & Recreation
3,611,860
956,830
5,313,643
561,153
10,443,486
Older Assets not
Maintained by Function
189,500
85,270
146,373
21,434
442,577
Total
$ 4,274,427 $
8,993,938
$ 9.548,744
$ 5,056,159
$ 27,873,268
Deletions
Balance
and
Balance
09-30-03
Additions
Transfers
09-30-04
General Government
$ 6,719,448
$ 174,509
$ -
$ 6,893,957
Public Safety
4,332,801
406,865
-
4,739,666
Physical Environment/
Transportation
5,174,825
178,757
-
5,353,582
Culture & Recreation
8,741,499
1,701,987
-
10,443,486
Older Assets not
Maintained by Function
481,185
-
38,608
442,577
Total
$ 25,449,758
$ 2,462,118
$ 38,608
$ 27,873,268
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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.
CITY OF CLERMONT, FLORIDA
GOVERNMENT -WIDE EXPENSES
BY FUNCTION
Last Ten Fiscal Years
Fiscal
Year
General
Public
Physical
Transportation
Economic
Human
Ended Government
Safety
Environment
Public Works
Environment
Services
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$2,336,912
$4,687,907
$421,297
$ 1,055,914
$31,791
$131,633
* Data not available prior to the implementation of GASB 34.
67
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
CITY OF CLERMONT, FLORIDA
GOVERNMENT -WIDE REVENUES
Last Ten Fiscal Years
Program Revenues
General Revenues
Operating
Capital
Fiscal Year
Charges
Grants and
Grants and
Ended
For Services
Contribution
Contributions
Taxes
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$12,584,856
$695,987
$7,095,189
$6,791,284
* Data Not available prior to the implementation of GASB 34.
_ _General Revenues __
Investment
Income &
Intergovernmental Miscellaneous Total
$2,369,020 $575,076 $30,111,412
T
CITY OF CLERMONT, FLORIDA
GENERAL GOVERNMENTAL_ EXPENDITURES BY FUNCTION (11
LAST TEN FISCAL YEARS
Fiscal General Public Physical
Year Government Safety Environment
1995
$492,751
$1,063,691
$134,633
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
(1) Includes General, Special Revenue, and Capital Projects Funds.
Excludes Debt Service.
(2) Community Development Block Grant expenditures were included in
the 1995-96, 1996-97, 1997-98 and 1998-99 Fiscal Years.
71
(2)
Economic
Human
Culture and
Tranwortatio_n
Environment
Services
Recreation
Total
$413,565
$10,895
$17,141
$934,829
$3,067,505
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
VA
CITY OF CLERMONT, FLORIDA
GENERAL GOVERNMENTAL REVENUE BY SOURCE t1
LAST TEN FISCAL YEARS
Licenses Charges
Fiscal and Inter- for
Year Taxes Permits Governmental Services
1995
$2,142,822
$67,549
$576,484
$57,241
1996
2,377,962
84,260
665,899
32,537
1997
2,497,102
97,347
988,581
46,354
1998
2,769,826
133,595
1,012,582
42,459
1999
3,171,446
149,702
872,081
44,336
2000
3,911,066
188,517
959,751
60,148
2001
4,873,847
211,101
930,028
36,613
2002
5,677,448
252,702
1,407,363
367,279
2003
6,733,867
277,264
1,152,050
378,425
2004
6,791,284
466,422
2,758,120
380,669
(1) Includes General, Special Revenue, Debt Service and
Capital Projects Funds.
73
Fines
and
Investment
Impact
Forfeitures
Income
Fees
Miscellaneous
Total
$152,020
$86,600
$16,606
$510,081
$3,609,403
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
74
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
1995
1994
$206,921,182
$186,229,064
2.979
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
(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.
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
$554,776
$538,217
97.0%
$893
$539,110
97.2%
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%
76
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 Citv Count Stormwater
1995
1994
2.979
5.135
0.000
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
(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.
77
Lake
County
Lake County
South Lake
St. Johns River
School
Water
Hospital
Water Management
District
Authority
District
District
Total
8.515
0.4000
2.0000
0.482
19.5110
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
to
CITY OF CLERMONT, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DEBT
September 30, 2004
The City of Clermont did not have any overlapping debt at the above fiscal year end.
79
CITY OF CLERMONT, FLORIDA
DEMOGRAPHIC STATISTIC
LAST TEN FISCAL YEARS
(2)
(3)
Fiscal
(1)
School
Unemployment
Year
Pow
Enrollment
Rate
1995
7,233
1,787
5.0%
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%
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.
CITY OF CLERMONT, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(1)
(1)
Commercial
Residential
Construction
Construction
Fiscal
# of
# of
Year
Units
Value
Units
Value
1995
2
$450,000
19
$1,412,837
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
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.
F
Assessed Taxable
(2)
Property Value
Bank
(3)
(4)
Deposits
Taxable
Nontaxable
$1,718,591,000
$186,229,064
$56,910,019
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
m
CITY OF CLERMONT, FLORIDA
WATER AND SEWER CUSTOMER DATA
LAST TEN FISCAL YEARS
Annual
Number of
Customers
Water
Fiscal
Water
Sewer
Usage
Year
Residential
Commercial
Residential
Commercial
(Gal)
1995
3136
392
1978
350
482,962,000
1996
3483
391
2334
358
630,763,000
1997
3987
439
2770
386
833,834,000
1998
4549
447
3099
388
1,087,078,000
1999
5009
490
3328
443
1,146,663,000
2000
5992
531
3928
458
1,394,359,000
2001
7303
579
5001
511
1,365,196,000
2002
8461
644
6243
581
1,299,701,000
2003
10529
723
7650
673
1,338,818,000
2004
12751
817
9217
767
1,655,203,000
Source: Water and Sewer Customer Data Reports as of September 30
CITY OF CLERMONT, FLORIDA
PRINCIPAL TAXPAYERS
Taxpayer
South Lake Hospital, Inc.
PO Box 562008
Orlando, FL 32856
Lennar Homes, Inc.
North Florida Land Division
151 S Wymore Rd Ste 4000
Altamonte Springs, FL 32714
Target Corporation
PO Box 9456
Minneapolis, MN 55440
Sundance Clermont LLC
5405 Cypress Center Dr Ste 320
Tampa, FL 33609
Clermont Center LTD
18205 Biscayne Blvd #2202
Aventura, FL 33160
Village at East Lake Ltd Partnership
300 East Lombard St Ste 1200
Baltimore, MD 21202
Lucas Clermont Limited Partnership
401 N Cattleman Rd Ste 108
Sarasota, FL 34232
John P Adams & Ann D Adams Family LP
PO Box 1667
Winter Haven, FL 33880
Sprint -Florida Incorporated
PO Box 12913
Shawnee Mission, KS 66212
Assessed
Valuation
as of January 1, 2004
$16,485,846
16,065,488
11,916,743
11,256,859
9,549,354
8,980,573
8,423,628
7,966,530
Chester C Fosgate Co 7,178,058
PO Box 568821
Orlando, FL 32856
TOTAL $109,722,947
Source: 2004 City of Clermont Tax Roll, prepared by the Lake County Property
Appraiser's office.
84
Percentage
of Tota I
Assessed
Valuation
1.80%
1.75%
1.30%
1.30%
1.23%
1.04%
0.98%
0.92%
0.87%
0.78%
11.98%
CITY OF CLERMONT, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 2004
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
1916
1962
Council -Manager
Five (5)
Two Years (2)
Appointed
11.58 square miles
97.00
1,106
1
3
34
6
18
1,500
2
34
3
2
338
5,219
13,568
4,534,803 gallons
92.94
41.15
9.53
R
CITY OF CLERMONT, FLORIDA
MISCELLANEOUS STATISTICAL DATA -CONTINUED
Recreation and Culture
Number of Parks
Scenic Linear Trail
Fishing Piers
Number of Libraries
City Employees
Full -Time
Part -Time
SEPTEMBER 30, 2004
22 with 101.5 acres
3.5 miles
4
191
14
0
CITY OF CLERMONT, FLORIDA
UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS
LAST TEN FISCAL YEARS
Total (1)
Fiscal System Operating
Year Revenues Expenses
1995
$1,569,180
$948,234
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
2,952,556
2003
6,178,579
3,461,216
2004
7,546,012
4,339,959
(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
$620,946
$326,420
1.90%
958,864
509,355
1.88%
1,036,772
708,660
1.46%
1,127,707
711,250
1.59%
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 %
::
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CITY OF CLERMONT, FLORIDA
LARGEST EMPLOYERS
Employer
South Lake Hospital
Lake County School System
Target
City of Clermont
Publix
Home Depot
CBS Builders Supply Inc.
Westminister Care of Clermont
Winn Dixie
K Mart
Number of
Indust Emalgvees
Health Care
815
Education
537
Retail
315
Municipality
205
Grocery
200
Retail
200
Construction Supplies
200
Retirement and Nursing
189
Grocery
125
Retail
100
5.81
CITY OF CLERMONT, FLORIDA
SCHEDULE OF INSURANCE COVERAGES
SEPTEMBER 30, 2004
Policy Expiration
Type of Coverage & Insurer Number Date
Liability
Florida Municipal Liability FMIT 101 9/30/2004
Self Insurer's Program
Workers Compensation
Florida Municipal Self FMIT 101 9/30/2004
Insurers Fund
Fire and Extended Coverage
Florida Municipal Property FMIT 101 9/30/2004
Self -Insurers Program
0
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 $38,280,700
a
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MCDIRMIT /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
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, 2004, and have issued our report thereon dated January 21, 2005.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Compliance - As part of obtaining reasonable assurance about whether the City of Clermont,
Florida's basic financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with
which could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing
Standards. However, we noted certain immaterial instances of noncompliance that we have
reported to management of the City of Clermont, Florida in a separate letter dated January 21,
2005.
Internal Control Over Financial Reporting - In planning and performing our audit, we
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 January 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 tn�t MCDIRMITDAVIS.COM
ME NIB ERS: PRIVATE COMPANIES PRACTICE SECTION • ANIERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
92
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.
i
January 21, 2005
93