Comprehensive Annual Financial Report - 2002-2003Comprehensive
Annual Financial Report
Fiscal Year Ended
September 30, 2003
MONO
i rfi
City of Clermont, Florida
Pictured is Clermont City Hall located in beautiful, historic downtown
Clermont. City Hall construction began with a ground breaking
ceremony on June 21, 2002. Financing was provided for the project
through the 2002 Public Improvement Revenue Bond. City Hall
opened on September 8, 2003.
CITY OF CLERMONT, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL
REPORT SEPTEMBER 30, 2003
Prepared by:
Administrative Services Department
Joseph E. Van Zile
Administrative Services Director
CITY OF CLERMONT, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30,.2003
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letterof Transmittal.................................................................................. i
Organizational Chart ..............................................................................xiii
Certificate of Achievement.....................................................................AV
Listing of City Officials........................................................................... xv
II. FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
Independent Auditor's Report ..................................................................1
GENERAL PURPOSE FINANCIAL STATEMENTS Combined Statements —
Overview
Combined Balance Sheet —All Fund Types and Account Groups........... 3
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances —All Governmental Fund
Types and Expendable Trust Funds..................................................7
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances — Budget and Actual — All Governmental
FundTypes........................................................................................9
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings/Fund Balance —All Proprietary
Fund Types and Nonexpendable Trust Funds.................................12
Combined Statement of Changes in Pension Fund Net Assets.............13
Combined Statement of Cash Flows — All Proprietary Fund
Types and Nonexpendable Trust Funds.....................................14
TABLE OF CONTENTS
FINANCIAL SECTION CONTINUED
Notes to Financial Statements...............................................................16
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
General Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual..................................................37
Special Revenue Funds:
Combining Balance Sheet.....................................................................39
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances..............................................................40
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances — Budget and Actual .............................41
Debt Service Funds:
Combining Balance Sheet.....................................................................45
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances..............................................................46
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances — Budget and Actual .............................47
Enterprise Funds:
Combining Balance Sheet.....................................................................49
Combining Statement of Revenues, Expenses and Changes in
Retained Earnings............................................................................51
Combining Statement of Cash Flows....................................................52
TABLE OF CONTENTS
FINANCIAL SECTION CONTINUED
Trust Funds:
Combining Balance Sheet. .................................................................... 54
Comparative Statement of Pension Fund Net Assets ............................55
Combining Statement of Changes in Pension Fund Net Assets ............ 56
Account Groups:
Schedule of General Fixed Assets by Sources......................................57
Schedule of General Fixed Assets - by Function and Activity ...............58
STATISTICAL SECTION
Comments on the Statistical Section................................................................59
Expenditures by Function — Last Ten Fiscal Years..........................................60
Revenue by Source — Last Ten Fiscal Years...................................................62
Property Tax Levies, Tax Collections and Assessed
Valuations — Last Ten Fiscal Years.............................................................64
Property Tax Rates — Direct and All Overlapping Governments —
LastTen Fiscal Years.................................................................................66
Computation of Direct and Overlapping General
ObligationDebt........................................................................................... 68
Water and Sewer Customer Data — Last Ten Fiscal Years .............................. 69
Utility Revenue Bond Coverage - All Utility Revenue Bonds —
Last Ten Fiscal Years.................................................................................70
Demographic Statistics — Last Ten Fiscal Years .............................................. 72
Property Value, Construction and Bank Deposits —
LastTen Fiscal Years................................................................................. 73
TABLE OF CONTENTS
STATISICAL SECTION CONTINUED
PrincipalTaxpayers..........................................................................................75
Largest Employers .................................... .......76
................................................
Schedule of Insurance Coverages...................................................................77
Miscellaneous Statistical Data..........................................................................79
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..........................................................81
Report on Compliance with Requirements Applicable to the Major
Program and Internal Control over Compliance in Accordance
With OMB Circular A-133............................................................................83
Schedule of Expenditures of Federal Awards..................................................85
Notes to Schedule of Expenditures of Federal Awards....................................86
Schedule of Findings and Questioned Costs — Federal Program.....................87
A
INTRODUCTORY SECTION
This section contains the letter of transmittal,
organizational chart, certificate of achievement and listing of city
officials.
CITY OF CLERMONT
Office of the City Manager
March 5, 2004
Honorable Mayor and Council Members
City of Clermont
Clermont, Florida
The Comprehensive Annual Financial Report of the City of Clermont, Florida, for the
fiscal year ended September 30, 2003, is hereby submitted. This report was prepared by
the City's Finance Department. Responsibility for both the accuracy of the presented
data and the completeness and fairness of the presentation, including all disclosures, rests
with the City. We believe the data, as presented, is accurate in all material aspects; that it
is presented in a manner designed to fairly present the financial position and results of
operations of the City as measured by the financial activity of its various funds, and that
it includes the disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial activities.
THE REPORTING ENTITY AND ITS SERVICES
The City of Clermont, which occupies 11.5 square miles, was incorporated in 1916. 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 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.
Lake County, located in Central Florida, is bounded to the north by Marion County, to
the south by Polk County, to the east by Orange County, Seminole County and Volusia
County, and to the west by Sumter County. Tavares, the County Seat, is located
approximately 190 miles southeast of Tallahassee, the State Capitol, and 50 miles
northwest of Orlando.
P.O. BOX 120219 • CLERMONT, FLORIDA 34712-0219
PHONE: 352/394-4081 • FAX: 352/394-1452
The City has a Council -Manager form of government, with a Mayor and four other
Council Members who are elected at large for two year staggered terms. Elections are
held on the first Tuesday after the first Monday in November of each year. The City
employs a full-time manager who is the chief executive and administrative officer of the
City.
The City provides a full range of municipal services as directed by its charter. These
include Police and Fire Protection, Street and Sidewalk Maintenance, Planning and
Development, Code Enforcement, Animal/Mosquito Control, Recreational Facilities and
Programs, Cemetery and General Administrative functions. Clermont also operates and
maintains water, wastewater treatment, sanitation, and stormwater utilities. In addition,
the City was a financial supporter of a private library that serves city residents, as well as
residents of the surrounding area. During the 2002-03 fiscal year, the library agreed to
join the county -wide library system.
The funds and entities related to the City of Clermont included in our Comprehensive
Annual Financial Report, are those for which the City Council has financial
accountability. According to criteria outlined in Governmental Accounting Standards
Board (GASB) statements, financial accountability is present if the City Council appoints
a voting majority of a component unit's governing body and has the ability to impose its
will on that organization or if there is a potential for the organization to provide specific
financial benefits to or impose specific financial burdens on the City. Based on these
criteria, the various funds and account groups shown in the table of contents are properly
included in this report.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The City's accounting records for General, Special Revenue, Debt Service, Capital
Projects and certain Trust and Agency Funds are maintained on a modified accrual basis
with revenues being recognized when they become measurable and available, while
expenditures are recorded at the time liabilities are incurred. Accounting records for the
Enterprise, Internal Service and certain Trust and Agency Funds are maintained on a full
accrual basis.
In developing and modifying the City's accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to
provide reasonable, but not absolute assurance regarding:
1. The safeguarding of assets against loss from unauthorized use or disposition; and
2. The reliability of financial records for preparing financial statements and maintaining
accountability for assets.
ii
The concept of reasonable assurance recognizes that:
1. The cost of control should not exceed the benefits likely to be derived; and
2. The evaluation of costs and benefits requires estimates and judgements by
management.
All internal control evaluations occur within the above framework. The City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of
proper recording of financial transactions.
Budgetary integration is established in the accounting records for control purposes at the
object level. The City Manager is authorized to approve transfers within departments,
but changes in total budget appropriations for a department must have prior approval of
the City Council. Budgetary reports are issued and reviewed monthly by staff.
FINANCIAL STATEMENT FORMAT
The report is arranged in the following sections:
Section A: Introduction Section
This section contains the Letter of Transmittal and other such
material as may be useful in understanding the reporting entity.
Section B: Financial Section
This section of the report contains the Independent Auditor's
report and financial statements of the City. The financial
statements include the General Purpose Financial Statements,
which display financial data for the City as a whole and
Combining Statements by Fund Type, which present data for
homogeneous funds.
Section C: Statistical Section
This section presents detailed historical information that will be
beneficial to the reader in understanding the City's growth and its
future potential.
Section D: Other Reports
This section contains other Independent Auditor's reports.
ui
GENERAL FUND
The General Fund encompasses the general government functions of the City and all
other functions not accounted for in other funds.
Unreserved, undesignated fund balance increased 21.6% from $2,558,824 to $3,110,397.
Fund balance is the amount of resources available for expenditure in future years. The
increase in fund balance is primarily due to actual revenues exceeding anticipated
revenues.
Revenues and other financing sources of the current fiscal year as compared with those of
the previous year are presented as follows:
2002-2003
Amount % of total
2001-2002
Amount % of total
0/6 Iac./)ec.
Over 2001-02
Taxes
$5,737,705
70.5%
$4,924,708
69.4%
16.5 %
Licenses and Permits
277,264
3.4
252,702
3.5
9.7
Intergovernmental
986,247
12.1
897,166
12.6
9.9
Charges for Services
378,425
4.7
367,279
5.2
3.0
Fines and Forfeitures
114,013
1.4
111,517
1.6
2.2
Investment Income
79,666
1.0
75,558
1.1
5.4
Miscellaneous Revenues
218,885
2.7
170,546
2.4
28.3
Transfers In
318,160
3.9
295,183
4.2
7.8
Debt Proceeds
27,500
0.3
0
0.0
N/A
Total
$89137,865
100%
$7,094,659
100%
14.7%
General Fund revenues increased 14.7% from $7,094,659 to $8,137,865 primarily due to
increases in tax revenue. Taxes increased primarily due to an increase in franchise fees,
utility service taxes and ad valorem revenues. The revenue increases were the result of
growth and not a change in the City's tax rate structure. Clermont continues to enjoy
being one of the lowest taxed communities in Central Florida.
iv
Expenditures and other financing uses of the current fiscal year as compared with those
of the previous year are as follows:
2002-2003
Amount % of total
2001-2002
Amount % of total
% Inc./Dec.
Over 2001-02
General Government
$1,354,585
17.9%
$1,118,513
17.0%
21.1%
Public Safety
3,777,852
49.8
3,191,561
48.4
18.4
Physical Environment
35,237
0.5
41,611
0.6
(15.3)
Transportation
809,642
10.7
638,330
9.7
26.8
Economic Environment
25,856
0.3
23,854
0.4
8.4
Human Services
88,638
1.2
69,479
1.1
27.6
Culture & Recreation
1,334,214
17.6
1,212,709
18.4
10.0
Debt Service
63,704
0.8
80,193
1.2
(20.6)
Transfers Out
91,454
1.2
214,151
3.2
(57.3)
Total
$7,581,182
100%
$6,590,755
100%
15.0%
General Fund expenditures increased 15% from $6,590,755 to $7,581,182 primarily due
to increases in personnel and operating expenditures in the General Government, Public
Safety and Transportation categories. Five (5) new positions were added in the General
Government category and eight (8) new positions were added in the Public Safety
category. Transportation expenditures increased primarily due to road resurfacing
projects. Transfers Out decreased significantly due to a one-time transfer to the
Stormwater Fund for the Center Lake project in fiscal year 2001-02.
I SPECIAL REVENUE FUNDS I
INFRASTRUCTURE FUND
The Infrastructure Fund accounts 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, has been in effect since 1987. In November 2001, Lake County
residents voted to continue the surtax for another fifteen (15) years. The surtax may only
be expended on items pertaining to the construction of fixed capital outlay.
Infrastructure surtax funds were used in the fiscal year 2002-03 to subsidize the
completion of the downtown revitalization project, assist in the purchase of land for City
Hall and annual debt service associated with the 1989 Sales Tax and 2002 Public
Improvement Revenue Bond issues.
IMPACT FEE FUNDS
Impact Fee Funds account for the police, fire and recreation 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 police, fire and recreational services.
v
Comparative impact fee amounts for the last three fiscal years are as follows:
2002-2.003
2001-2002
2000-2001
Police hE act Fees
331,549
$405,167
$222,503
Fire lm act Fees
303,547
$387,518
$218,862
Recreation Impact Fees
789,253 1
$521,486
$503,454
Total Impact Fees
1,424,349
$1,314,171
$944,819
Total impact fees increased from $1,314,171 to $1,424,349. Recreation impact fees
increased 51.3% due to an increase in the number of residential construction permits
issued during the 2002-03 fiscal year as noted in Table 9 of the Statistical Section.
However, police and fire impact fees decreased due to a reduction of commercial
construction permits issued in the 2002-03 fiscal year. Since commercial units are
assessed police and fire, but not recreation impact fees, this explains the decrease in
police and fire impact fees.
Impact fees were used to purchase various equipment and vehicles. In addition, police
impact fees paid for two thirds of the new communication center radio system and in -car
video systems for six vehicles. Fire impact fees were used for the annual debt service
associated with the financing of the construction of Fire Station No. 1.
BLOCK GRANT FUND
The City received a $600,000 Community Development Block Grant from the State of
Florida during the 2000-01 fiscal year. This grant was used for the Downtown
Streetscape project during the 2001-02 and 2002-03 fiscal years. The project included
street resurfacing, new sidewalks and parking facilities. Attractive lighting, landscaping,
and benches were added also.
_ - - - .. _ ........... -- - ...... _... ...... _... ..
DEBT SERVICE FUND 9
The Sales Tax Revenue Bond Sinking Fund is maintained to account for the
accumulation of resources and the payment of debt service on the 1989 Sales Tax
Revenue Bond. The bond was issued to provide funding for the development of the
Palatlakaha Recreation Area and construction of the Public Services Complex and Public
Safety Building. During fiscal year 2002-03 the City made its final payment on this bond
issue.
The 2002 Public Improvement Revenue Bond Fund was created to account for the
accumulation of resources and payment of principal and interest for the Public
Improvement Revenue Bonds. The bond was issued to provide funding for the
construction of a new City Hall and to refinance a line of credit loan which was obtained
in 2000 to provide funding for the construction of Fire Station No. 1.
vi
I CAPITAL PROJECT FUND i
The Building Construction Fund is maintained to account for the financial resources and
related expenditures pertaining to the construction of a new City Hall. City Hall opened
its doors for business on September 8, 2003. As of the end of the fiscal year $5,150,127
was spent for construction. Final payments for equipment and furniture will be paid in
fiscal year 2003-04. Financing for the project is provided through the proceeds of the
2002 Public Improvement Revenue Bond.
ENTERPRISE FUNDS
WATER FUND
The Water Fund accounts for the provision of potable water service to City and non -City
residents. Comparative data for the last three fiscal years is as follows:
2002-2003
2001-2002 T
2000-2001
Operating Revenues
$3,533,383
$3,219,265
$2,654,416
Operating Expenses
$2,063,736
$1,722,581
$1,270,542
Operating Income
$1,469,647
$1,496,684
$1,383,874
Net Working Capital
$5,326,622
$3,286,692
$2,366,163
Debt Service Coverage
Combined Water/Sewer
2.70%
2.70%
3.05%
Operating revenues and expenses increased 9.8% and 19.8% respectively, primarily due
to servicing an expanded customer base. Expenses increased primarily due to increased
personnel and operating expenses. A Chief Water Plant Operator and part-time Water
Conservation Technician were added during the fiscal year. The residential customer
base has increased from 8,461 customers in September 2002 to 10,529 as of September
2003.
SEWER FUND
The Sewer Fund accounts for the provision of sewer services to City and non -City
residents. Comparative data for the last three fiscal years is as follows:
2002-2003
2001-2002
2000-2001
erat ng Revenues
$2,299,948
$1,835,173
$1,562,488
Operating Expenses
$2,245,711
$1,871,267
$1,568,320
Operating Income(Loss)
$54,237
$36,094)
($5,832)
Net Working Capital
$338,158
$148,639
$417,593
Debt Service Coverage
Combined Water/Sewer
2.70%
2.70%
3.05%
vii
Operating revenues and expenses increased 25.3% and 20.0% respectively, primarily due
to servicing an expanded customer base. Expenses increased due to a full year of
personnel and operating expenses at the new wastewater treatment plant. The residential
sewer system customer base has increased from 6,243 customers in September 2002 to
7,650 as of September 2003.
SANITATION FUND
The Sanitation Fund accounts for the provision of garbage and trash collection, recycling,
and composting services to City residents. Comparative data for the last three fiscal
years is as follows:
2002-2003
2001-2002
2000-2001
Operating Revenues
$1,626,189
$1,362,327
$1,144,053
Operating Expenses
$1,439,798
$1,164,639
$1,091,335
Operating Income (Loss
$186,391
$197,688
$52,718
Net Working Capital
$511,128
$252,913
$42,937
Operating revenues and expenses increased 19.3% and 23.6%, respectively, primarily due
to servicing an expanding customer base.
STORMWATER UTILITY FUND
The Stormwater Utility Fund accounts for the maintenance and improvement of the
City's stormwater drainage system. The stormwater utility fee is charged to all property
owners/tenants throughout the City and is based on the impervious area of their property.
Comparative data for the last three fiscal years is as follows:
2002-2003
2001-2002
2000-2001
Operating Revenues
$504,732
$449,476
$396,747
Operating Expenses
$215,145
$160,233
$168,302
Operating Income
$289,587
$289,243
$228,445
Net Working Capital
$761,731
$498,885
$365,436
Operating revenues and expenses increased 12.3% and 34.3% respectively. Expenses
increased due to increased costs of maintaining and improving the City's retention areas
and storm drain system.
I INTERNAL SERVICE FUND 1
The City maintains a Group Self -Insurance Fund to account for the accumulation of
resources and the payment of insurance claims pertaining to the employee health and
insurance coverage. The modified Self -Insurance Program is responsible for health and
dental claims up to $40,000 per employee. Reinsurance provides coverage in excess of
the City's limits up to $1,000,000 per employee.
viii
The Group Self -Insurance Fund had a negative retained earnings balance of $41,765 as of
September 30, 2003. The negative retained earnings was primarily due to paid medical
claims exceeding premiums collected. As a result, the City approved a premium
adjustment during the 2003-04 fiscal year.
TRUST FUNDS
Trust Funds account for assets held by the City as Trustee for individuals, private
organizations and other governmental units and/or funds.
The General Employees', Police Officers' and Volunteer Firefighters' Pension Trust
Funds account for the accumulation of resources to be used for the retirement annuities of
all city employees.
The Cemetery Perpetual Care Trust Fund accounts for monies received from people
buying lots in the City cemetery. The principal must be kept intact, but the interest may
be transferred to General Fund to defray the cost of cemetery operation and maintenance.
The Community Redevelopment Fund accounts for funds administered by the Downtown
Clermont Redevelopment Agency. The agency is authorized to use the funds to finance
community redevelopment projects within the downtown area. In fiscal year 2002-03 the
Community Redevelopment Fund made a $38,713 contribution to the Community
Development Block Grant Fund to provide additional funding for the Downtown
Streetscape project.
GENERAL FIXED ASSETS
The general assets of the City of Clermont are those fixed assets used in the performance
of general governmental functions and exclude the fixed assets of the Proprietary Funds.
As of September 30, 2003, the general fixed assets of the City totaled $25,449,758. This
amount represents the original cost of the assets and is, therefore, considerably less than
their present value. Depreciation of general fixed assets is not recognized in the City's
accounting system.
CASH MANAGEMENT
The City maintains an investment policy that is based on the theory of minimizing credit
and market risks, maintaining reasonable liquidity to meet maturing obligations, and
maximizing return through the use of various investment sources.
The City's investment program consists of funds invested in overnight repurchase
agreements, the Florida State Board of Administration Investment Pool, and in United
States Treasury securities. The overnight repurchase agreements are in relation to a
ix
banking service agreement the City maintains with a local qualified public depository.
The agreement provides that a specific rate of return based on the bank's federal funds
rate and amount of excess funds to be credited to the City's account on a daily basis.
The Florida State Board of Administration Investment Pool is managed by the State of
Florida and is available to any governmental agency within the State. The major
advantages the pool offers to small cities such as Clermont are the higher rate of return
from the large amount of funds available to invest and the liquidity of the invested funds.
Access to the invested funds is on a daily basis.
DEBT ADMINISTRATION
The City has the following long-term debt issues outstanding on September 30, 2003
➢ A long-term note issued in 1980 to finance the purchase of the Library Building.
➢ A Capital Improvement Revenue Note issued in 1998 to provide funding for the
purchase of computer equipment and a fire truck.
➢ A Capital Improvement Revenue Note issued in 1999 to provide funding for the
purchase of a fire truck.
➢ A Water and Sewer Revenue and Refunding Bond issued in 2000 to defease its
outstanding 1993 City of Arcadia Dedicated Pool Local Government Revenue Bonds,
refinance the City's outstanding 1996 Bond Anticipation Note, and finance a portion
of the City's sewer treatment plant expansion and various other capital improvements
to the City's Water and Sewer System.
➢ A Public Improvement Revenue Bond issued in 2002 to provide funds for the
construction of a new City Hall facility and pay off a $2,000,000 line of credit used to
finance Fire Station No. 1 and City Hall engineering and design costs.
➢ A lease -purchase note issued in 2003 to provide funding for a police community
relations vehicle.
RISK MANAGEMENT
The City maintains Commercial Liability and Worker's Compensation insurance through
programs sponsored and administered by the Florida League of Cities. The limit of
protection for the liability coverage is $1,500,000 per occurrence. The City is not aware
of any pending or threatened litigation, which would not be covered by insurance.
X
FINANCIAL POSITION AND FUTURE PROSPECTS
The City continues to have a strong financial position. 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 City continues to provide a relatively high level of service while maintaining one of
the lower property tax rates in the area. Fees for services, such as water, sewer, and
sanitation, are also in an acceptable range.
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.
The overall financial position and economic outlook for the City is positive but we must
continue to be aware of future trends when planning expansion projects and adding
additional personnel the will require multi -year funding commitments. A combination of
careful short and long range planning, conservative budgeting, and sound management
practices will ensure the future financial stability of the City.
CERTIFICATE OF ACHIEVEMENT
r
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Clermont, Florida, for its Comprehensive Annual Financial Report for the fiscal year
ended September 30, 2002. The Certificate of Achievement is the highest form of
recognition for excellence in state and local government financial reporting.
In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized Comprehensive Annual Financial Report, whose
contents conform to program standards. Such reports must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of
Clermont has received a Certificate of Achievement for the last fifteen consecutive fiscal
years. We believe our current report continues to conform to the Certificate of
Achievement Program requirements, and we are submitting it to GFOA.
Xi
INDEPENDENT AUDIT
Florida Statutes and the City Charter require an annual financial audit of the financial
statements of the City of Clermont by an independent certified public accountant selected
by the City Council. This requirement has been satisfied and the Auditor's unqualified
opinion has been included in this report.
ACKNOWLEDGEMENTS
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of the staffs in the City Manager's office,
Planning Department and Finance Department. A special note of appreciation is due Lisa
Strickland, Accountant for her hard work and dedicated efforts in the preparation of this
report. I would also like to thank the Mayor and members of the City Council for their
interest and support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Respectfully submitted,
V
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Way Saunders
City Manager
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Joseph . V n Zile
Admi tr tive Services Director
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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, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
E "e�a6�
EPresident
CACAO
Executive Director
xiv
Mayor
Mayor Pro-Tem
Council Member
Council Member
Council Member
CITY OF CLERMONT, FLORIDA
LISTING OF CITY OFFICIALS
ELECTED OFFICIALS
Harold S. Turville, Jr.
Keith Mullins
Frank Caputo
Gail Ash
Elaine Renick
APPOINTED OFFICIALS
City Manager Wayne Saunders
City Attorney Robert D. Guthrie
Administrative Services Director Joseph E. Van Zile
Public Services Director Preston Davis
Chief of Police Randy Story
Fire Chief Carle Bishop
Utility Director/City Engineer Tamara Richardson
Planning Director Barry Brown
City Clerk Tracy Ackroyd
xv
0,
NANCIAL SECTION
section contains the following subsections:
INDEPENDENT AUDITOR'S REPORT
PURPOSE FINANCIAL STATEMENTS
COMBINING AND INDIVIDUAL FUND AND
ACCOUNT GROUP STATEMENTS
1
1
1
11
F��� INDEPENDENT AUDITa
I
I
s
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Commissioners
City of Clermont, Florida
We have audited the accompanying general purpose financial statements of the City of Clermont,
Florida, as of and for the year ended September 30, 2003, as listed in the table of contents. These
general purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose 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
general purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the general
purpose financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall general purpose
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Clermont Florida, as of September 30, 2003,
and the results of its operations and the cash flows of its proprietary fund types and the changes
in pension fund net assets for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
December 5, 2003 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.
MCDIRMIT DAVIS PUCKETT & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
605 E. ROBINSON STREET, SUITE 635 - ORLANDO, FLORIDA 32801
TELEPHONE 407-843-5406 e Fax 407-649-9339 • EMAIL: INFOCMDPCPA.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION - AMERICAN INSTITUTE OF CERTIFIED PUBLIC. ACCOUNTANTS ° FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
1
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements and the schedule of expenditures of federal awards listed in the accompanying table
of contents are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements of the City of Clermont, Florida. Such information has been
subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, is fairly presented in all material respects in relation to the general
purpose financial statements taken as a whole.
The information listed in the Statistical Section is presented for purposes of additional analysis
and is not a required part of the general purpose financial statements. Such information has not
been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, accordingly, we express no opinion on it.
December 5, 2003
E
GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements -Overview)
These basic financial statements provide a summary overview of the
financial position of all funds and account groups as well as the
operating results of all funds. They also serve as an introduction to
the detailed statements that follow in subsequent sections.
CITY OF CLERMONT, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2003
Assets:
Cash and cash equivalents
Investments
Receivables:
Accounts
Interest
Other
Interfund receivables
Due from other governments
Prepaid items
Inventory
Interfund advances
Restricted assets:
Cash and cash equivalents
Investments
Deferred charges
Property, plant and equipment
Less: accumulated depreciation
Construction in progress
Amount available in debt service funds
Amount to be provided for retirement
of general long-term debt
Total assets
Governmental Fund Typ
Special Debt
General Revenue Service
Capital
Projects
$ 596,862 $ 542,647 $ 344,728 $ 85,901
2,565,697 1,626,003 - 713,057
38,890 - - -
21,771 - - -
14,680 - - -
200,166 252,577 - -
119,724 - - -
13,072 - 29,360 - - -
$ 3,600,222 $ 2,421,227 $ 344,728 $ 798,958
The accompanying Notes to Financial Statements are an integral part of these statements.
3
Fiduciary
Proprietary Fund Types Fund Type Account Groups
General General Totals
Internal Fixed Long -Term (Memorandum
Enterprise Service Trust Assets Debt Only)
$ 951,970 $ 21,005 $ 54,164 $ -
$ - $ 2,597,277
5,545,717 - 6,924,789 -
- 17,375,263
637,210 - - -
- 676,100
61,167 - - -
- 82,938
24,358 - - -
- 24,358
1,021,733 - - -
- 1,036,413
- - - -
- 452,743
61,058 - - -
- 180,782
32,420 - - -
- 45,492
- - - -
- 29,360
1,507,448 - - -
- 1,507,448
16,649,910 - - -
- 16,649,910
363,501 - - -
- 363,501
37,193,667 - - 25,376,825
- 62,570,492
(9,516,159) - - -
- (9,516,159)
567,346 - - 72,933
- 640,279
- - - -
344,728 344,728
- - - -
7,148,577 7,148,577
$ 55,101,346 $ 21,005 $ 6,978,953 $ 25,449,758 $ 7,493,305 $ 102,209,502
(Continued)
4
CITY OF CLERMONT, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS Continued
September 30, 2003
Governmental Fund Types
Special
Debt
Capital
General
Revenue
Service
Projects
Liabilities and Fund Equity:
Liabilities:
Accounts payable
$ 169,686
$ -
$ -
$ 562,123
Accrued liabilities
100,371
-
-
-
Retainage payable
-
-
-
130,836
Interest payable
733
-
-
-
Current liabilities
(payable from restricted assets):
Retainage payable
-
-
-
-
Customer deposits
-
-
-
-
Accrued interest
-
-
-
-
Interfund payables
-
-
-
-
Interrund advances
-
-
-
-
Deferred developer credits
-
72,127
-
-
Deferred revenue
-
12,824
-
-
Accrued annual leave
52,241
-
-
-
Revenue bonds payable
-
-
-
-
Notes payable
-
-
-
-
Totalliabilities
323,031
84,951
-
692,959
Fund equity:
Contributed capital
-
-
-
--
Investment in general fixed assets
-
-
-
-
Retained earnings:
Reserved
-
-
Unreserved
-
-
Total retained earnings
-
-
-
-
Fund balances:
Reserved:
Parking lots
4,638
-
-
-
Inventory
13,072
-
-
-
Prepaids
119,724
-
-
-
Interfund advances
29,360
-
-
-
Cemetery care
-
-
-
-
Debt service
-
-
344,728
-
Employee's pension benefits
-
-
-
-
Unreserved:
Undesignated
3,110,397
2,336,276
-
105,999
Total fund balances
3,277,191
2,336,276
344,728
105,999
Total Equity and Other Credits
3,277,191
2,336,276
344,728
105,999
Total Liabilities, Fund Equity and Other Credits $3,600,222 $2,421,227 $344,728 $ 798,958
The accompanying Notes to Financial Statements are an integral part of these statements.
5
Fiduciary
Proprietary Fund Types
Fund Type
Account Groups
General General
Totals
Internal
Fixed Long -Term
(Memorandum
Enterprise
Service
Trust
Assets Debt
Only)
$ 334,769
$ 62,770
$ -
$ - $ -
$ 1,129,348
41,492
-
-
- -
141,863
-
-
-
- -
130,836
-
-
-
- -
733
152,246
-
-
- -
152,246
310,709
-
-
- -
310,709
1,021,733
-
14,680
- -
1,036,413
-
-
29,360
- -
29,360
-
-
-
- -
72,127
-
-
-
- -
12,824
149,609
-
-
- 147,525
349,375
17,280,213
-
-
- 6,965,000
24,245,213
-
-
-
- 380,780
1 380,780
19,290,771
62,770
44,040
- 7,493,305
27,991,827
11 083 291
15,497,630 - -
9,229,654 (41,765) -
24,727,284 (41,765) -
-
25,449,758 - 25,449,758
- 15,497,630
-_ - 9,187,889
24,685,519
- - - -
- 4,638
- - - -
- 13,072
- - - -
- 119,724
- - - -
- 29,360
- - 414,720 -
- 414,720
- - - -
- 344,728
- - 6,538,159 -
- 6,538,159
- - (17,966) -
- 5,534,706
- - 6,934,913 -
- 12,999,107
35,810,575 (41,765) 6,934,913 25,449,758
- 74,217,675
$ 55,101,346 $ 21,005 $ 6,978,953 $ 25,449,758 $ 7,493,305 $ 102,209,502
A
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND
EXPENDABLE TRUST FUNDS
For The Year Ended September 30, 2003
Governmental Fund Types
Special
Debt
Capital
General
Revenue
Service
Projects
Revenues:
Taxes
$ 5,737,705
$ 996,162
$ -
$ -
Licenses and permits
277,264
-
-
-
Intergovernmental revenues
986,247
165,803
-
-
Charges for services
378,425
-
-
-
Fines and forfeitures
114,013
-
-
-
Impact fees/special assessments
-
1,424,349
-
-
Investment income
79,666
23,627
2,066
38,771
Miscellaneous revenues
218,885
-
-
-
Total revenues
7,792,205
2,609,941
2,066
38,771
Expenditures:
Current:
General government
1,354,585
92,107
-
4,355,675
Public safety
3,777,852
190,392
-
-
Physical environment
35,237
-
-
-
Transportation
809,642
-
-
-
Economic environment
25,856
320,688
-
-
Human services
88,638
-
-
-
Culture and recreation
1,334,214
182,103
-
-
Debt service:
Principal retirement
60,394
45,440
130,000
-
Interest and fiscal charges
3,310
16,868
236,766
-
Total expenditures
7,489,728
847,598
366,766
4,355,675
Excess (Deficiency) of Revenues
Over Expenditures
302,477
1,762,343
(364,700)
(4,316,904)
Other Financing Sources (Uses):
Operating transfers in
318,160
244,885
586,374
-
Operating transfers out
(91,454)
(733,303)
-
-
Debt proceeds
27,500
-
-
Net other financing sources (uses)
254,206
(488,418)
586,374
-
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses
556,683
1,273,925
221,674
(4,316,904)
Fund Balances - Beginning of Year 2,720,508 1,062,351 123,054 4,422,903
Fund Balances - End of Year $ 3,277,191 $ 2,336,276 $ 344,728 $ 105,999
The accompanying Notes to Financial Statements are an integral part of these statements.
7
Fiduciary
Fund Type Totals
Expendable (Memorandum
Trust Only)
$ 59,843 $ 6,793,710
- 277,264
- 1,152,050
- 378,425
- 114,013
- 1,424,349
332 144,462
- 218,885
60,175 10,503,158
- 5,802,367
- 3,968,244
- 35,237
- 809,642
12,918 359,462
- 88,638
1,516,317
235,834
- 256,944
12,918 13,072,685
47,257 (2,569,527)
32,211 1,181,630
(38,713) (863,470)
27,500
(6,502) 345,660
40,755 (2,223,867)
(58,721) 8,270,095
$ (17,966) $ 6,046,228
N.
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF REVENUES, _EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
For The Year Ended September 30, 2003
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees/special assessments
Investment income
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Debt proceeds
Net other financing sources (uses)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures
and Other Uses
Fund Balances - Beginning of Year
General Fund
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 5,424,112
$ 5,737,705
$ 313,593
215,000
277,264
62,264
899,631
986,247
86,616
371,817
378,425
6,608
156,000
114,013
(41,987)
68,450
79,666
11,216
128,665
218,885
90,220
7,263,675
7,792,205
528,530
1,594,392
1,354,585
239,807
3,620,467
3,777,852
(157,385)
38,206
35,237
2,969
773,397
809,642
(36,245)
32,260
25,856
6,404
109,627
88,638
20,989
1,528,959
1,334,214
194,745
60,394
60,394
-
4,015
3,310
705
7,761,717
7,489,728
271,989
(498,042)
302,477
800,519
363,104
318,160
(44,944)
(91,509)
(91,454)
55
-
27,500
27,500
271,595
254,206
(17,389)
(226,447)
556,683
783,130
2,404,949
2,720,508
315,559
Fund Balances - End of Year $ 2,178,502 $ 3,277,191 $ 1,098,689
�i
Special Revenue Funds Debt Service Fund
Variance
Favorable
Budget
Actual
(Unfavorable) Budget
$ 798,800
$ 996,162
$ 197,362 $ - $
-
165,803
165,803 -
755,000
1,424,349
669,349 -
30,100
23,627
(6,473) 3,100
1,583,900
2,609,941
1,026,041 3,100
Variance
Favorable
:ual (Unfavorable)
2,066 (1,034)
2,066 (1,034)
92,107
92,107
-
-
-
-
217,641
190,392
27,249
-
-
-
35,000
-
35,000
-
-
-
351,746
320,688
31,058
-
-
-
266,656
182,103
84,553
-
-
-
45,440
45,440
-
139,165
130,000
9,165
16,675
16,868
(193)
276,012
236,766
39,246
1,025,265
847,598
177,667
415,177
366,766
48,411
558,635
1,762,343
1,203,708
(412,077)
(364,700)
47,377
232,713
244,885
12,172
412,077
586,374
174,297
(721,131)
(733,303)
(12,172)
-
-
-
(488,418)
(488,418)
-
412,077
586,374
174,297
70,217
1,273,925
1,203,708
-
221,674
221,674
1,172,002
1,062,351
(109,651)
-
123,054
123,054
$ 1,242,219
$ 2,336,276
$ 1,094,057
$ -
$ 344,728
$ 344,728
(Continued)
10
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF REVENUES _EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
For The Year Ended September 30, 2003
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees/special assessments
Investment income
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Debt proceeds
Net other financing sources (uses)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures
and Other Uses
Fund Balances - Beginning of Year
Fund Balances - End of Year
Capital Projects Fund
Variance
Favorable
Budget
Actual
(Unfavorable)
8,000
38,771
30,771
8,000
38,771
30,771
5,479,000
4,355,675
1,123,325
5,479,000
4,355,675
1,123,325
(5,471,000)
(4,316,904)
1,154,096
150,000 - (150,000)
150,000 - (150,000)
(5,321,000) (4,316,904) 1,004,096
5,321,000 4,422,903 (898,097)
$ - $ 105,999 $ 105,999
11
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES
IN RETAINED EARNINGS/ FUND BALANCE
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS
For The Year Ended September 30, 2003
Operating Revenues:
Charges for services
Sales - cemetery lots
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Utilities
Dumping fees
Administrative services
Repairs and maintenance
Depreciation and amortization
Professional services
Insurance
Operating supplies
Office expense
Bad debt
Medical claims
Total operating expenses
Operating income (loss)
Nonoperating Revenue (Expenses):
Impact fees from developers
Interest revenue
Interest expense
Total nonoperating revenue
Income (loss) before operating
transfers
Operating Transfers:
Operating transfers in
Operating transfers out
Net operating transfers
Net income (loss)
Retained Earnings/Fund Balance -
Beginning of Year
Retained Earnings/Fund Balance -
End of Year
Proprietary Fund Types
Internal
Enterprise Service
$ 7,755,106 $ 1,148,702
209,146 -
7,964,252 1,148,702
2,105,887
-
556,433
-
225,811
-
328,217
39,231
674,706
-
947,165
-
723,764
-
133,431
155,664
172,852
-
65,117
-
31,007
-
-
931,951
5,964,390
1,126,846
1,999,862
21,856
5,884,218 -
356,868 279
(453,281) -
5,787,805 279
7,787,667 22,135
Fiduciary
Fund Type
Nonexpendable
T.. .-f
26,420
7R A 7n
300
300
26,120
5,994
5,994
32,114
(312,166) - (5,994)
(312,166) - (5,994)
7,475,501 22,135 26,120
17,251,783 (63,900) 388,600
$ 24,727,284 $ (41,765) $ 414,720
Totals
(Memorandum
Only)
$ 8,903,808
26,420
209,146
9,139,374
2,105,887
556,433
225,811
367,448
675,006
947,165
723,764
289,095
172,852
65,117
31,007
931,951
7,091,536
.l nA7 "0
5,884,218
363,141
(453,281)
5,794,078
7,841,916
(318,160)
(318,160)
7,523,756
17,576,483
$ 25,100,239
The accompanying Notes to Financial Statements are an integral part of these statements.
12
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
For The Year Ended September 30, 2003
Additions:
Contributions:
Employer
$ 274,074
Plan members
45,806
State
251,152
Total contributions
571,032
Investment income:
Investment income (loss)
653,488
Less: investment expense
(28,102)
Net investment income (loss)
625,386
Total additions
1,196,418
Deductions:
Benefits/distributions
187,824
Total deductions
187,824
Net Increase (Decrease)
1,008,594
Net Assets Held in Trust for Pension Benefits:
Beginning of Year
5,529,565
End of Year
$ 6,538,159
The accompanying Notes to Financial Statements are an integral part of these statements.
13
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS
For The Year Ended September 30, 2003
Fiduciary
Proprietary Fund Types Fund Type Totals
Internal Nonexpendable (Memorandum
Enterprise Service Trust Only)
Cash Flows from Operating Activities:
Receipts from customers
$ 7,892,794
$ 1,227,511 $ 26,420 $
9,146,725
Payments to suppliers
(3,946,159)
(194,895) (300)
(4,141,354)
Payments to employees
(2,089,509)
- -
(2,089,509)
Payments for medical claims
-
(1,011,890) -
(1,011,890)
Net cash provided by (used in) operating
activities
1,857,126
20,726 26,120
1,903,972
Cash Flows from Non -Capital Financing
Activities:
Short term interfund advance
(26,399)
Operating transfers out
(312,166)
Net cash provided (used) by non -capital
financing activities
(331 65)
Cash Flows from Capital and Related
Financing Activities:
Acquisition and construction of fixed asset:
(1,566,649)
Interest paid on bonds and leases
(491,846)
Impact fees received
5,884,218
Net cash provided (used) by capital and
related financing activities
3,825,723
Cash Flows from Investing Activities:
Interest received
356,868
Investment purchases
(4,461,808)
Net cash provided (used) by investing
activities
(4,104, 940)
Net Increase in Cash and Cash Equivalents
1,239,344
Cash and Cash Equivalents at
Beginning of Year
1,220,074
Cash and Cash Equivalents at
End of Year
Classified As:
Current assets
Restricted assets
Total
(26,399)
(5,994) (318,160)
- (5,994� (344,559)
- (1,566,649)
- (491,846)
- 5,884,218
- 3,825,723
279 5,994
363,141
- (5,760)
(4,467,568)
279 234
(4,104,427)
21,005 20,360
1,280,709
- 7,730
1,227,804
$ 2,459,418 $ 21,005 $ 28,090 $ 2,508,513
$ 951,970 $ 21,005 $ 28,090 $ 1,001,065
1,507,448 - - 1,507,448
$ 2,459,418 $ 21,005 $ 28,090 $ 2,508,513
The accompanying Notes to Financial Statements are an integral part of these statements.
14
Reconciliation of Operating Income to Net
Cash Provided by(Used in) Operating
Activities:
Operating income
Adjustments Not Affecting Cash:
Depreciation and amortization
Fiduciary
Proprietary Fund Types Fund Type Totals
Internal Nonexpendable (Memorandum
Enterprise Service Trust Only)
$ 1,999,862 $ 21,856 $ 26,120 $ 2,047,838
985,730 - - 985,730
Change in Assets and Liabilities:
Decrease (increase) in accounts receivable
(89,026) 78,809
- (10,217)
Increase in prepaids
(18,380) -
- (18,380)
Increase in inventory
(10,691) -
- (10,691)
Decrease in accounts payable
(517,624) (79,939)
- (597,563)
Increase in accrued expenses
9,256 -
- 9,256
Decrease in retainage payable
(535,947) -
- (535,947)
Increase in accrued annual leave
16,378 -
- 16,378
Increase in customer deposits
17,568 -
- 17,568
Total adjustments
(142,736) (1,130)
- (143,866)
Net Cash Provided by (Used in) Operating
Activities: $ 1,857,126 $ 20,726 $ 26,120 $ 1,903,972
15
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
Note 1 - Summary of Significant Accounting Policies:
The City of Clermont, Florida was incorporated December 1916, under the laws of the State of
Florida and operates under the council-manager form of government under its charter
adopted pursuant to H.B. 2223, Ch. 67-1217 Special Acts 1967, of the State of Florida.
The accounting policies of the City of Clermont, Florida, conform to accounting principles
generally accepted in the United States of America as applicable to governments. The
following is a summary of the more significant policies:
Reporting Entity- Accounting principles generally accepted in the United States of America
require that these financial statements present the City (the primary government) and its
component units. Component units generally are legally separate entities for which a primary
government is financially accountable. Financial accountability ordinarily involves meeting
both of the following criteria: the primary government is accountable for the potential
component unit (i.e., the primary government appoints the voting majority of its board) and the
primary government is able to impose its will upon the potential component unit, or there is a
possibility that the potential component unit may provide specific financial benefits or impose
specific financial burdens on the primary government. The component unit discussed in this
note is included in the City's reporting entity because of the significance of its operational or
financial relationship with the City. Based upon the application of these criteria, the City has
one blended component unit as follows:
The City of Clermont Community Redevelopment Trust 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 111, 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 expendable trust fund.
Fund Accounting - The accounts of the City are organized on the basis of funds or account
groups, each of which is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self -balancing accounts that comprise its assets,
liabilities, fund equity, revenue and expenditures, or expenses, as appropriate. Government
resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled. The
various funds and account groups of the City are as follows:
16
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS -Continued
September 30, 2003
Note 1 - Summary of Significant Accounting Policies (Continued):
Governmental Fund Types
General Fund - To account for all financial resources except those required to be
accounted for in another fund. All general tax revenues and other receipts that are not
allocated by law or contractual agreement to another fund are accounted for in this fund.
The general operating expenditures, fixed charges, and capital improvement costs that
are not paid through other funds are paid from the general fund.
Special Revenue Funds - To account for the proceeds of specific revenue sources
(other than expendable trust, or major capital projects) requiring separate accounting
because of legal or regulatory provisions or administrative action.
Debt Service Fund - To account for the accumulation of resources for, and the payment
of general long-term debt principal and interest.
Capital Projects Funds - To account for the acquisition and construction of major capital
facilities other than those financed by proprietary funds and trust funds.
Proprietary Fund Types
Enterprise Funds - To account for operations that are financed and operated in a
manner similar to private business enterprises, where the intent of the governing body is
that costs of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges, or where the governing body has
decided that periodic determination of net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
Internal Service Funds - To account for operations that provide services to other
departments and funds on a cost -reimbursement basis.
Fiduciary Fund Types
Trust Funds - To account for assets held by the City in a trustee capacity for individuals,
private organizations, other governments, and/or other funds. When these assets are held
under the terms of a formal trust agreement, either a pension trust fund, a nonexpendable
trust fund, or an expendable trust fund is used. The terms "nonexpendable" and
"expendable" refer to whether or not the government is under an obligation to maintain the
trust principal.
17
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS -Continued
September 30, 2003
Note 1 - Summary of Significant Accounting Policies (Continued):
Account Groups
General Fixed Assets Account Group - To account for all fixed assets of the City, other
than those accounted for in the enterprise funds.
General Long -Term Debt Account Group - To account for the outstanding long-term
obligations not otherwise recorded in enterprise, nonexpendable trust and pension trust
funds.
Basis of Accounting - The accounting and financial reporting treatment applied to a fund is
determined by its measurement focus. All governmental funds and expendable trust funds
are accounted for using a current financial resources measurement focus. With this
measurement focus, only current assets and current liabilities generally are included on the
balance sheet. Operating statements of these funds present increases (i.e., revenues and
other financing sources) and decreases (i.e., expenditures and other financing uses) in net
current assets.
All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on
a flow of economic resources measurement focus. With this measurement focus, all assets
and all liabilities associated with the operation of these funds are included on the balance
sheet or statement of plan net assets. Fund equity (i.e., net total assets) is segregated into
contributed capital and retained earnings components. Proprietary fund -type operating
statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total
assets. The City has chosen not to use FAS13 pronouncements issued after November 30,
1989, for its proprietary activities.
The modified accrual basis of accounting is used by all governmental fund types and
expendable trust funds. Under the modified accrual basis of accounting, revenues are
recognized when susceptible to accrual (i.e., when they become both measurable and
available,) "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period. The government considers property taxes as available if
they are collected within 60 days after year-end. A one-year availability period is used for
revenue recognition for all other governmental fund revenues. Expenditures are recorded
when the related fund liability is incurred. Principal and interest on general long-term debt are
recorded as fund liabilities when due or when amounts have been accumulated in the debt
service fund for payments to be made early in the following year.
18
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 1 - Summary of Significant Accounting Policies (Continued):
Basis of Accounting (Continued)
All major revenues, except property taxes and licenses, are considered measurable and
available and, as such, susceptible to accrual.
The accrual basis of accounting is utilized by proprietary fund types, pension trust funds and
nonexpendable trust funds. Under this method, revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred.
Cash and Cash Equivalents - For purposes of cash flows, cash includes amounts in demand
deposits as well as short-term investments with a maturity date within three months of the date
acquired by the government. Governmental fund investments, proprietary fund investments,
and pension funds investments are reported at fair value.
Accounts Receivable From Other Governments - Those amounts that represent a claim
against another government, and are measurable, have been accrued.
Receivables - Enterprise Funds maintain the direct write-off method of bad debt recognition
due to the immateriality of amounts. The City has no concentrations of credit risk.
Inventories - Inventories are stated at cost, using the FIFO method. Inventories are
maintained by the General Fund and the Enterprise Funds. The City uses the consumption
method in expensing governmental fund inventories.
Restricted Assets - The restricted assets shown on the Enterprise Fund balance sheet
represent those assets of the Enterprise Fund which are earmarked for specific purposes and
cannot be used for paying general obligations of the Fund. The corresponding liability
designated as payable from restricted assets represents the current maturities for which the
restricted assets are accumulated.
Amortization of Bond Discounts and Issuance Costs - Bond discounts and issuance costs
are being amortized on a straight-line basis, which approximates the interest method, over the
life of the bonds. Amortization of bond issuance costs amounted to $13,380 for the 2003
fiscal year. Amortization of bond discount, included in interest expense, amounted to $38,565
for the 2003 fiscal year.
19
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 1 - Summary of Significant Accounting Policies (Continued):
Fixed Assets - General fixed assets are not capitalized in the funds used to acquire or
construct them. Instead, capital acquisition and construction are reflected as expenditures in
governmental funds, and the related assets are reported in the general fixed assets account
group. All purchased fixed assets are valued at cost where historical records are available
and at estimated historical cost where no historical record exists. Donated fixed assets are
valued at their estimated fair market value on the date received.
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. Improvements are capitalized and
depreciated over the remaining useful lives of the related fixed assets, as applicable.
Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and
gutters, street and sidewalks, drainage systems and lighting systems are capitalized by the
City along with other general fixed assets.
Assets in the general fixed assets account group are not depreciated. Depreciation of
buildings, equipment and vehicles in the proprietary fund types is computed using the straight-
line method, over the following estimated useful lives.
Useful
Proprietary Type Funds Lives (years)
Buildings 25 - 40
Land Improvements 5 — 40
Equipment 3 — 35
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The amount
of interest to be capitalized is calculated by offsetting interest expense incurred from the date
of the borrowing until completion of the project with interest earned on invested proceeds over
the same period.
Compensated Absences - The City accrues accumulated unpaid vacation when earned by
the employee. Upon termination, the employee receives a cash benefit for the number of
days accrued at the employee's current wage rate. The City pays a portion of unused sick
leave for employees with at least ten (10) years of service. Such amounts have been accrued
in the accompanying financial statements. Vacation pay is accrued when incurred in
proprietary funds are reported as a fund liability. Vacation and sick pay that is expected to be
liquidated with expendable available financial resources is reported as an expenditure and a
fund liability of the governmental fund that will pay it. Amounts not expected to be liquidated
with expendable available financial resources are reported in the general long-term debt
account group. No expenditure is reported for these amounts.
20
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 1 - Summary of Significant Accounting Policies (Continued):
Long-term Obligations - Long-term debt is recognized as a liability of a governmental fund
when due. For other long-term obligations, only that portion expected to be financed from
expendable available financial resources is reported as a fund liability of a governmental fund.
The remaining portion of such obligations is reported in the general long-term debt account
group. Long-term liabilities expected to be financed from proprietary fund operations are
accounted for in those funds.
Risk Management - The City exposed to various risks of loss related to torts, theft of,
damage to and destruction of assets; errors and omissions; natural disasters; and job -related
illnesses or injuries to employees. Significant losses are covered through participation in a
local government non -assessable self-insurance pool. For these insured programs, there
have been no significant reductions in insurance coverage. Settlement amounts have not
exceeded insurance coverage for the current year or the three prior years.
The City 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 City with a total aggregate stop -loss of $1,000,000.
Fund Equity
Proprietary Funds - Contributed capital consists of funds from developers, and federal
and state (capital) grants through September 30, 2000. There have been no additions to
contributed capital since then because the City was required to implement GASB
Statement No. 33. This statement requires governmental entities that use proprietary fund
accounting to recognize capital contributions and impact fees received as revenues, not
contributed capital. However, governments are not allowed to restate contributed capital
arising from periods prior to implementation of Statement No. 33 until implementation of
GASB Statement No. 34. Grants received for operating assistance are recorded as non -
operating revenue.
Reservations of retained earnings are created by increases in assets restricted for debt
service, renewal and replacement, and other contractual obligations. These increases
result from earnings on restricted assets and other intrafund transfers to (from) restricted
accounts. Earnings on restricted assets are included in net income of the Proprietary
Funds. Reserves are not established for bond proceeds deposited into construction
accounts.
Governmental Funds - Reserves of the governmental funds are limited to the portions of
fund balance, which are either not subsequently appropriated for expenditures or legally
segregated for specific use.
21
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 1 - Summary of Significant Accounting Policies (Continued):
Interfund Transactions - Transactions which constitute reimbursements to a fund for
expenditures (expenses) initially made are recorded as expenditures or expenses (as
appropriate) in the reimbursing fund and as reductions of the expenditures (expenses) in
the reimbursed fund.
All interfund transactions except advances and reimbursements are accounted for as
transfers. Non -recurring or non -routine transfers of equity between funds are considered
residual equity transfers. All other interfund transactions are treated as operating
transfers.
Property Tax Recognition - The key dates in the property tax cycle (latest date where
appropriate) are as follows:
Assessment/lien date
January 1
Assessment roll validate
July 1
Millage resolution approved
September 30
Beginning of fiscal year for which taxes have been levied
October 1
Tax bills rendered and due
November 1
Property taxes payable:
Maximum discount
November 30
Delinquent
April 1
Tax certificates sold
May 31
Property taxes are collected and remitted by the county tax collector. The City does not
accrue its portion of county held tax sale certificates because such amounts are neither
measurable nor available at balance sheet date.
The statutory maximum tax rates, which may be assessed by the City, are as follows:
Ad valorem millage
Utility tax (electric, gas telephone)
Utility tax (telecommunications service tax)
10 mills
10%
5.22%
Total Columns on the Combined Statements - Overview - Total columns on the Combined
Statements - Overview are captioned "Memorandum Only' to indicate that they are presented
only to facilitate financial analysis. Data in these columns do not present financial position,
results of operations, or changes in cash flows in conformity with accounting principles
generally accepted in the United States of America. Neither is such data comparable to a
consolidation. Interfund eliminations have not been made in the aggregation of this data.
22
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 2 - Stewardship, Compliance and Accountability:
Budgets and Budgetary Accounting - Budgets are legally adopted for all of the City funds
except the internal service fund and the pension trust funds. Budgets for governmental funds
and the expendable trust fund are adopted on a basis consistent with generally accepted
accounting principles. The budgets for the enterprise funds are prepared on the modified
accrual basis of accounting, which is not the same basis of accounting that is used to account
for the actual results of operations. The actual results of operations are accounted for on the
accrual basis. The following item indicates the primary difference between the budgetary
basis and the GAAP basis used to account for the results of operations in the enterprise
funds:
• Depreciation expense is not budgeted; however, expenses for capital outlays are
budgeted. These outlays have been capitalized into fixed assets and eliminated from
the results of operations on a GAAP basis.
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. Prior to August 31st, the City Manager submits to the City Council the proposed
operating budget for the fiscal year commencing the following October 1st. The
operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to October 1st, the budget is legally enacted through passage of a resolution.
The legal level of budgetary control is the department level. Administrative control is
maintained at the object level through integration with accounting records. Appropriations
lapse at the end of each fiscal year. Encumbrance accounting is not used by the City.
The City Manager is authorized to transfer budgeted amounts within departments within any
fund. However, any revisions that alter the total expenditures of a department must be
approved by the City Council. During the year ended September 30, 2003, the City made
several amendments to the budget. Budgeted amounts presented in the accompanying
financial statements have been adjusted for legally authorized revisions.
23
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 2 - Stewardship, Compliance and Accountability (Continued):
Excess of Expenditures over Appropriations - In the general fund, actual expenditures
exceeded appropriations in the following departments: law enforcement $169,049;
transportation $36,245 and library $4,353.
In special revenue funds, actual expenditures exceeded appropriations in the Fire Impact Fee
Fund.
Deficit Fund Equity - At September 30, 2003, the Group Self Insurance Fund had a deficit
retained earnings of $41,765. The City is increasing the premium in order to provide operating
income for future years. At September 30, 2003, the Community Redevelopment Fund had a
deficit fund balance of $17,966, which occurred because of the fund borrowing money from
the general fund in prior years to pay off a loan.
Note 3 - Deposits and Investments:
Following are the components of the City's cash and investments at September 30, 2003:
Unrestricted
Restricted
Total
Cash and cash equivalents $ 2,597,277
$ 1,507,448
$ 4,104,725
Investments 17,375,263
16,649,910
34,025,173
$19,972,540
$18,157,358
$38,129, 998
Deposits - The Florida Security for Depositors Act identifies those financial institutions that
have deposited the required collateral in the name of the treasurer of the State of Florida as
qualified public depositories. The City only places deposits with qualified public depositories.
Therefore, all City deposits are entirely insured by FDIC or Florida's Multiple Financial
Institution Collateral Pool. At. September 30, 2003, the carrying amount of the City's deposits
was $132,640 and the bank balance was $190,984.
24
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 3 - Deposits and Investments (Continued):
Investments - The City's investment policies are governed by state statutes and City
ordinances. Authorized investments are:
1. The Local Government Surplus Funds Trust Fund, (commonly referred to as the SBA).
2. Unites States Government Securities.
3. United States Government Agencies.
4. Interest -bearing time deposits or savings accounts in qualified public depositories, as
defined in s. 280.02.
5. Repurchase Agreements
6. Commercial paper that is rated "Prime-1" by Moody's or "A-1" by Standard and Poors.
7. Bankers' Acceptances with either a "Prime-1" or " "A-1" rating.
8. Registered investment companies.
9. Intergovernmental investment pool that is authorized pursuant to Section 163.01
Florida Statutes, and provided that said funds contain no derivatives.
The SBA is not a registrant with the Securities and Exchange Commission (SEC): however,
the Board has adopted operating procedures consistent with the requirements for a 2a-7 fund.
Therefore the pool account balance (amortized cost) can be used as fair value for financial
reporting.
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 if
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
participation. The pension funds' equity in this pooled investment account is stated at fair
value as provided by the Florida Municipal Pension Fund.
25
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 3 - Deposits and Investments (Continued):
Investments (Continued) - The City's investments are categorized to give an indication of the
level of risk assumed by the City at September 30, 2003:
Category 1 includes investments that are insured or registered for which the City or its
agent in the City's name holds the securities.
Category 2 includes uninsured and unregistered investments for which counterparty's
trust department or agent in the City's name holds the securities.
Category 3 includes uninsured and unregistered investments for which the securities are
held by counterparty, its trust department or agent, but not in the City's name.
The assets of the City's general employees defined contribution pension fund are also
invested in mutual funds of Citistreet. Investments in the SBA, FMPTF and Citistreet are not
required to be categorized since these investments are in pooled investment funds and mutual
funds and therefore not evidenced by securities that exist in physical or book entry form. At
September 30, 2003, the City's investment balances were as follows:
U.S. Treasury Notes
Repurchase Agreement
Investments not subject to
categorization:
SBA Local Government
Investment Pool
Florida Municipal Pension
Pension Trust Fund
Citistreet
Category Reported Amount
1 2 3 Fair Value
$ - $6,762,395 $
- 3,972,086
6,762,395 3,972,086
Note 4 - Community Development Block Grant Fund Mortgages Receivable:
$ 6,762,395
3,972.08
10,734,481
20,724,618
4,668,934
1, 869.225
37,997,258
The City rehabilitated houses using Community Development Block Grant funds. A mortgage
for the amount of rehabilitation costs was recorded for each house. Twenty percent of the
mortgage is forgiven each year the homeowner continues to live in the home and properly
maintains it. In each of the next five years, the amount of mortgages receivable will be
reduced, along with a corresponding amount of deferred revenue. During the year ended
September 30, 2003, $32,833 of the original mortgage amounts was forgiven.
26
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 5 - Property, Plant and Equipment:
During the fiscal year ended September 30, 2003, the following changes in general fixed
assets occurred:
Balance
Balance
9-30-02
Additions
Deletions
9-30-03
Land
$ 2,667,480
$ 92,106
$ -
$ 2,759,586
Buildings
4,092,572
4,694,332
-
8,786,904
Improvements
7,950,372
1,504,497
-
9,454,869
Machinery and equipment
3,361,041
1,093,073
(78,648)
4,375,466
Construction in progress
2.168.439
4.613.469
�(6,708.975)
72,933
Total
$20,239,904
$11,997,477
)
$25.449,758
The components of property, plant and equipment for the proprietary fund types at September
30, 2003 are:
Proprietary
Fund Types
Enterprise
Land
$ 1,464,129
Water system
9,653,032
Sewer system
22,852,064
Improvements
954,229
Equipment
2,270,213
Construction in progress
567.346
Total assets
37,761,013
Less: Accumulated depreciation
9,516,159
Net
$28,244,854
Note 6 - Retirement Plans:
The City maintains three separate single -employer, defined benefit pension plans for general
employees, sworn police officers and firefighters, respectively 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.
27
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 6 - Retirement Plans (Continued):
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 Commission 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.
Description of Plans - The General Employees Defined Benefit Pension Plan is for general
employees hired prior to September 30, 1985. The police officer 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.
28
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 6 - Retirement Plans (Continued):
Membership in each of the defined benefit pension plans at September 30, 2003 was as
follows:
General Police
Membership and Provisions Employees Officers Firefighters
Members
Retirees/beneficiaries receiving
Benefits 13 4 1
Vested terminated employees - 4 4
Active participating employees - 29 35
13
37 40
Funding Policy - The City's actuarially determined contribution rate per the October 1, 2002
actuarial valuations is 0% for general employees, 15.5% for police officers and 15.4% 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 the plan.
Annual Pension Cost and Net Pension Obligation - The City has contributed the Annual
Required Contribution (ARC) each year, since plan inception and thus 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, 2003.
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, 2002. The actuarial
and census information contained herein, unless otherwise indicated, reflects the status of the
Plan as of the actuarial valuation date.
ie
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 6 - Retirement Plans (Continued):
Required Supplementary information is as follows:
Schedule of Contributions from the Employer and Other Contributing Entities
General Employees
Police Officers
Firefihters
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
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%
1998
12,094
100%
61,966
100%
8,039
100%
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, 2002. 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 plans all use the aggregate actuarial cost method, which does not identify
or separately amortize unfounded actuarial liabilities. Therefore, presentation of a schedule of
funding progress is not required.
During the year none of the above plans held securities issued by the employer.
There were several factors in 2003 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%.
30
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 6 - Retirement Plans (Continued):
General Employee Defined Contribution Pension Plan - The defined Contribution Pension
Plan for General Employees of the City of Clermont was established October 1, 1985, as
defined in Chapter 16, Article IV, of the Clermont Code, and is available to all permanent
general employees of the City. 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
investments 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 2003 was $3,264,474; the City's total payroll was
$5,326,439.
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 Commission adopted and may amend plan
provision by resolution.
The required contribution by the City for fiscal year 2003 was $268,221, less forfeitures of
$57,978. Actual contribution was $210,243.
Note 7 - Post -retirement Benefits:
Retired employees have the option of continuing the same type of health and dental insurance
coverages available to them while they were employed with the City. The cost of the
premiums is paid totally by the retirees.
Note 8 - Bonds and Notes Payable:
The City issues bonds to provide funds for the acquisition
facilities. Bonds have been issued for both general gov(
These bonds are reported in the proprietary funds if the)
proprietary fund revenues. The City also has some notes
debt group which are being repaid by the General Fund
Revenue Fund.
and construction of major capital
rnment and proprietary activities.
are expected to be repaid from
payable in the general long-term
and the Fire Impact Fee Special
31
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 8 - Bonds and Notes Payable (Continued):
Summarized below are the City's bonds and notes outstanding at September 30, 2003:
Water and Sewer Fund -
Water and Sewer Refunding Revenue Refunding Bonds,
Series 2000, payable in annual installments of $100,000
(beginning December 2004) to $1,235,000 through 2030 with
semi-annual interest payments at 4.4% to 5.375%. The net
revenues of the water and sewer funds are pledged to secure
the repayment of the debt.
Less: Current Maturities
Bond Discounts
Total
General Long -Term Debt Account Group -
Public Improvement Revenue Bond, Series 2002, payable in
annual installments of $315,000 to $600,000 through 2017 with
semi-annual interest payments at 1.75% to 4.6%.
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% and are secured by the City's general government
revenues. The loan was obtained to upgrade the City's
computer system, achieve Y2K compliance and purchase a fire
truck.
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.
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 Y2% per annum, secured by the gasoline tax
revenues of the City.
Note payable to GMAC in twelve quarterly installments of $2,440
each, starting July 2003, including interest at 4.65%, secured by
vehicle.
Total:
$17,935,000
(654.787)
$17,280,213
6,965,000
119,481
226,843
9,396
25,060
7 345 780
32
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 8 - Bonds and Notes Payable (Continued):
Following is a maturity schedule of outstanding bonds and notes payable:
Year
Ended
General Long -Term Debt
Water and Sewer Fund
Total Debt
September 30
Principal
Interest
Principal
Interest
Service
2004
$ 506,511
$ 267,764
$ -
$ 932,128
$ 1,706,403
2005
459,207
255,965
100,000
929,928
1,745,100
2006
464,715
243,190
150,000
924,352
1,782,257
2007
447,205
229,506
230,000
915,802
1,822,513
2008
459,054
214,838
390,000
901,657
1,965,549
2009-2013
2,439,088
806,184
2,250,000
4,210,194
9,705,466
2014-2018
2,570,000
269,560
2,855,000
3,585,631
9,280,191
2019-2023
-
-
3,675,000
2,737,103
6,412,103
2024-2028
-
-
4,765,000
1,612,904
6,377,904
2029-2032
-
-
3,520000
290.250
3.810.250
$7 345,780
$2,287,007
$17 935,000
$17 039,949
$ 44,607 736
During the year
ended September 30, 2003,
the following changes in general long-term
debt occurred:
Bonds
Notes
Mortgages
Compensated
Payable
Payable
Payable
Absences
Total
Balance at October 1, 2002
Debt proceeds
Principal payments
Increase (decrease) in
compensated absences
Balance at September
30, 2003
$ 7,095,000 $ 445,301 $ 13,813
27,500 -
(130,000) (101,417) (4,417)
$ 6 965,000 $ 371,384 _ 9,396
Note 9 - Advance Refunding:
$ 158,601 $7,712,715
- 27,500
- (235,834)
(11,076) 01.076)
147,525 7 493 05
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, 2003, $1,575,000 of bonds
outstanding are considered defeased.
33
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 9 -Advance Refunding (Continued):
During 2001, the City advance refunded its outstanding $2,790,000 City of Arcadia Dedicated
Pool Local Government Revenue Bonds, Series 1993 by placing the proceeds of new bonds
in an irrevocable trust to provide for future debt service payments on the old debt. Therefore,
the trust account assets and the liability for the defeased bonds are not included in the City's
financial statements. At September 30, 2003, $2,200,000 bonds outstanding are considered
defeased.
Note 10 - Interfund Receivables and Payables:
Individual fund interfund receivable and payable balances at September 30, 2003, are as
follows:
General Fund
Water Fund
Sewer Fund
Community Redevelopment Fund
Total
Interfund
Receivables
and Advances
$ 44,040
1,021,733
$1,065,773
Interfund
Payables
and Advances
1,021,733
44, 040
$1,065,773
34
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 11 -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 prescriptions
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 paid 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
2003
2002
2001
$ 142,709
$ 59,815
$ 37,212
931,951
689,030
568,652
i 1.011.890)
[606.136)
i546,049)
62 770
142 709
59 815
Unpaid claims are based on reported claims up to sixty days after year end and personal
knowledge of any employees' major health crisis.
Note 12 - Commitments:
At September 30, 2003 the City had committed to the following construction projects:
Contracted Amount Cost Incurred to Date
Bell property purchase $1,500,000 $ 3,850
Sunburst Lane/Lakeview
Wells No. 5 and No. 4 $ 342,150 $101,808
Note 13 - Summary Disclosure of Significant Contingencies:
Litigation - During the ordinary course of its operations, the City is a party to various claims,
legal actions and complaints. In the opinion of the City's management and legal counsel,
these matters are not anticipated to have a material financial impact on the City.
35
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2003
Note 14 - Segment Information for Enterprise Funds:
The City maintains four enterprise funds, which provide water, sewer, sanitation and
stormwater services. Segment information for the year ended September 30, 2003 is as
follows:
Water Sewer Sanitation Stormwater Total
Operating
Revenues
13533 383
$ 2.299 948
_$1 6= 26.189
504 732
17 964 252
Depreciation and
Amortization
314,686
533,545
6$,255
30.679
447,165
Operating Income
(Loss)
1,469 647
54-237
289,587
1,999,862
Operating Grants
Operating
Transfers:
In
-
-
-
-
-
Out
(302,070)
(5,00)
l: 365)
(1 683)
(312 166)
Net Income
2,387 550
4,605,401
186 528
296,022
7.475 501
Current Capital
Contributions
-
-
-
-
-
Property Additions
555,258
947,125
-
64,266
1,566,649
Property
Deletions
-
-
-
-
Net Working
Capital
5,326,622
338,158
51.1.12$
7 11 731
6 937 639
Total Assets
19 882 583
32,608,000
868,727
1.742.036
55.101.346
Long-term Debt
7,181 598
10 219,032
24,591
4,601
17 429
Total Equity
12,250,589
21.067 091
7662aO
35.810 575
36
COMBINING AND INDIVIDUAL
FUND AND ACCOUNT GROUP
STATEMENTS
These financial statements provide a more detailed view of the
"General Purpose Financial Statements" presented in the preceding
subsection_
Combining statements are presented when there are more than one
fund of a given fund type.
Individual statements for the General Long -Term Debt Account Group
have not been presented since this Account Group has been
presented in its entirety in the General Purpose Financial Statements
Section and therefore presentation in this section would be
redundant.
GOVERNMENTAL FUND TYPES
r
GENERAL FUND
The General Fund accounts for all revenues and expenditures of the
City that are not required to be accounted for in other funds. It
receives a greater variety and number of taxes and other general
revenues than any other fund.
CITY OF CLERMONT, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For The Year Ended September 30, 2003
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Taxes:
Ad valorem
$ 2,555,912
$ 2,591,375
$ 35,463
Local option gas tax
226,800
243,126
16,326
Franchise taxes
832,400
922,121
89,721
Utility taxes
1,009,000
1,172,270
163,270
Telecommunication service taxes
800,000
808,813
.8,813
5,424,112
5,737,705
313,593
Licenses and permits:
Professional and occupational
65,000
69,162
4,162
Other permits
150,000
208,102
58,102
215,000
277,264
62,264
Intergovernmental revenues:
State revenue sharing
193,800
207,304
13,504
Mobile home and alcoholic beverage licenses
22,930
20,531
(2,399)
Half -cent sales tax
497,000
540,717
43,717
Motor fuel tax rebate
10,500
10,748
248
Municipality share of county occupational licenses
11,275
14,789
3,514
Municipality share of one -cent voted gas tax
60,000
70,776
10,776
Municipality share of EMS tax
71,000
72,014
1,014
Grants
33,126
49,368
16,242
899,631
986,247
86,616
Charges for services:
Public safety
3,600
3,340
(260)
Program activity fees
40,000
46,868
6,868
Administrative service fee
328,217
328,217
-
371,817
378,425
6,608
Fines and forfeitures:
Court fines
115,000
86,709
(28,291)
Police education and automation
35,000
18,904
(16,096)
False alarms
4,000
5,250
1,250
Confiscations
2,000
-
(2,000)
Code violations
-
3,150
3,150
156,000
114,013
(41,987)
Investment income
68,450
79,666
11,216
Miscellaneous revenues:
Rentals
114,465
145,070
30,605
Memorial sales and surplus equipment
3,000
5,245
2,245
Contributions and other
11,200
68,570
57,370
128,665
218,885
90,220
Total Revenues
$ 7,263,675
$ 7,792,205
$ 528,530
37
CITY OF CLERMONT, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (Continued)
For The
Year Ended September 30, 2003
Variance
Favorable
Budget
Actual
(Unfavorable)
Expenditures:
General government:
Legislative
$ 64,272 $
43,221
$ 21,051
Executive
190,672
183,767
6,905
Finance and administrative
383,367
369,357
14,010
Legal services
68,000
67,705
295
Planning and zoning
567,594
371,174
196,420
Other general services
320,487
319,361
1,126
Total general government
1,594,392
1,354,585
239,807
Public safety:
Law enforcement
2,501,546
2,670,595
(169,049)
Fire control
1,118,921
1,107,257
11,664
Total public safety
3,620,467
3,777,852
(157,385)
Physical environment:
38,206
35,237
2,969
Total physical environment
38,206
35,237
2,969
Transportation:
773,397
809,642
(36,245)
Total transportation
773,397
809,642
(36,245)
Economic Environment:
32,260
25,856
6,404
Total economic environment
32,260
25,856
6,404
Human Services:
Animal control
109,627
88,638
20,989
Total human services
109,627
88,638
20,989
Culture and recreation:
Library
199,941
204,294
(4,353)
Parks and recreation
1,329,018
1,129,920
199,098
Total culture and recreation
1,528,959
1,334,214
194,745
Debt service:
Principal retirement 60,394 60,394 -
Interest 4,015 3,310 705
Total debt service 64,409 63,704 705
Total expenditures $7,761,717 $7,489,728 $ 271,989
38
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of
specific revenue sources (other than special assessments,
expendable trust, or major capital projects) that are legally restricted
to expenditure for specified purposes. The General Fund pays
certain administrative expenses.
INFRASTRUCTURE FUND
To account for the proceeds of the Local Government Infrastructure
Surtax to be received by the City until December 2017. The
proceeds and interest accrued thereto, by law are only to be used to
finance, plan and construct infrastructure.
RECREATION IMPACT FEE FUND
To account for the recreation impact fees collected from new
developments constructed in the City.
POLICE IMPACT FEE FUND
To account for the police impact fees collected from new
developments constructed in the City.
FIRE IMPACT FEE FUND
To account for the fire impact fees collected from new developments
constructed in the City.
BLOCK GRANT FUND
To account for the Community Development Block Grant from the
U.S. Department of Housing and Urban Development.
CITY OF CLERMONT, FLORIDA
Assets:
Cash and cash equivalents
Investments
Interfund receivable
Due from other governments
Total assets
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
September 30, 2003
Recreation Police Fire
Infra- Impact Impact Impact
Structure Fee Fee Fee
Total
Special
Block Revenue
Grant Funds
$ 143,577 $ 158,578 $ 137,643 $ 102,849 $ - $ 542,647
365,860 538,661 527,657 193,825 - 1,626,003
162,577 90,000 - - - 252,577
$ 672,014 $ 787,239 $ 665,300 $ 296,674 $ - $ 2,421,227
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ -
$ - $
$ $
Contracts payable - retainage
-
- -
Interfund payable
-
- -
-
Deferred developer credits
-
- 34,978
37,149
Deferred revenue
12,824
- -
-
Total liabilities
12,824
- 34,978
_
37,149
Fund Balance
659,190
787,239 630,322
259,525
Total liabilities and fund balance
$ 672,014
$ 787,239 $ 665,300
$ 296,674 $
- 72,127
- 12,824
84,951
- 2,336,276
$ 2,421,227
0
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES.
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL SPECIAL REVENUE FUNDS
For The Year Ended September 30, 2003
Revenues:
Taxes
Intergovernmental revenues
Impact fees/special assessments
Investment income
Total revenues
Expenditures:
Current:
General government
Public safety
Economic environment
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (Deficiency) of Revenues and
Other Financing Sources Over
Expenditures and Other Financing Use
Fund Balances -Beginning of Year
Fund Balances -End of Year
Total
Recreation Police Fire Special
Infra- Impact Impact Impact Block Revenue
Structure Fee Fee Fee Grant Funds
$ 996,162 $ - $ - $ - $ - $ 996,162
- 90,000 - - 75,803 165,803
- 789,253 331,549 303,547 - 1,424,349
6,476 5,096 8,612 3,443 - 23,627
1,002,638 884,349 340,161 306,990 75,803 2,609,941
92,107 - - - -
92,107
- - 172,641 17,751 -
190,392
- - - - 320,688
320,688
3,920 178,183 - - -
182,103
- - - 45,440 -
45,440
- - - 16,868 -
16,868
96,027 178,183 172,641 80,059 320,688
847,598
906,611 706,166 167,520 226,931 (244,885) 1,762,343
- - - - 244,885 244,885
(654,312) - - (78,991) - (733,303)
(654,312) - - (78,991) 244,885 (488,418)
s 252,299 706,166 167,520 147,940 - 1,273,925
406,891 81,073 462,802 111,585 - 1,062,351
$ 659,190 $ 787,239 $ 630,322 $ 259,525 $ - $ 2,336,276
40
40
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
For The Year Ended September 30, 2003
Revenues:
Taxes
Intergovernmental revenues
Impact fees/special assessments
Investment income
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Economic environment
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (Deficiency) of Revenues and
Other Financing Sources Over
Expenditures and Other Financing Uses
Fund Balances - Beginning of Year
Fund Balances - End of Year
Infrastructure
Variance
Favorable
Budget Actual (Unfavorable)
$ 798,800 $ 996,162 $ 197,362
15,400 6,476 (8,924)
814,200 1,002,638 188,438
92,107 92,107 -
35,000 - 35,000
75,800 3,920 71,880
202,907 96,027 106,880
611,293 906,611 295,318
(642,140) (654,312) (12,172)
(642,140) (654,312) (12,172)
(30,847) 252,299 283,146
255,582 406,891 151,309
$ 224,735 $ 659,190 $ 434,455
41
Recreation Impact Fee
Police Impact Fee
Variance
Variance
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
-
90,000
90,000
-
-
-
500,000
789,253
289,253
130,000
331,549
201,549
4,000
5,096
1,096
6,500
8,612
2,112
504,000
884,349
380,349
136,500
340,161
203,661
-
-
-
200,241
172,641
27,600
190,856
178,183
12,673
-
-
-
12,673
27,600
172,641
178,183
200,241
190,856
313,144
706,166
393,022
(63,741)
167,520
231,261
313,144 706,166 393,022 (63,741) 167,520 231,261
39,072 81,073 42,001 546,863 462,802 (84,061)
$ 352,216 $ 787,239 $ 435,023 $ 483,122 $ 630,322 $ 147,200
(Continued)
42
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS (Continued
For The Year Ended September 30, 2003
Fire Imoact Fee
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Taxes
$ -
$ -
$ -
Intergovernmental revenues
-
-
-
Impact fees/special assessments
125,000
303,547
178,547
Investment income
4,200
3,443
(757)
Total revenues
129,200
306,990
177,790
Expenditures:
Current:
General government
-
- -
Public safety
17,400
17,751 (351)
Transportation
-
- -
Economic environment
-
- -
Culture and recreation
-
- -
Debt service:
Principal retirement
45,440
45,440 -
Interest and fiscal charges
16,675
16,868 (193)
Total expenditures
79,515
80,059 (544)
Excess (Deficiency) of Revenues
Over Expenditures 49,685 226,931 177,246
Other Financing Sources (Uses):
Operating transfers in - - -
Operating transfers out (78,991) (78,991) -
Total other financing sources (uses) (78,991) (78,991) -
Excess (Deficiency) of Revenues and
Other Financing Sources Over
Expenditures and Other Financing Uses
Fund Balances - Beginning of Year
Fund Balances - End of Year
(29,306) 147,940 177,246
211,452 111,585 (99,867)
$ 182,146 $ 259,525 $ 77,379
43
Block Grant
Totals
Variance
Variance
Favorable
Favorable
Budget Actual (Unfavorable)
Budget
Actual
(Unfavorable)
$ - $ - $ -
$ 798,800
$ 996,162
$ 197,362
- 75,803 75,803
-
165,803
165,803
- - -
755,000
1,424,349
669,349
- - -
30,100
23,627
(6,473)
- 75,803 75,803
1,583,900
2,609,941
1,026,041
-
-
-
92,107
92,107
-
-
-
-
217,641
190,392
27,249
-
-
-
35,000
-
35,000
351,746
320,688
31,058
351,746
320,688
31,058
-
-
-
266,656
182,103
84,553
-
-
-
45,440
45,440
-
-
-
-
16,675
16,868
(193)
351,746
320,688
31,058
1,025,265
847,598
177,667
(351,746)
(244,885)
106,861
558,635
1,762,343
1,203,708
232,713
244,885
12,172
232,713
244,885
12,172
-
-
-
(721,131)
(733,303)
(12,172)
232,713
244,885
12,172
(488,418)
(488,418)
-
(119,033) - 119,033 70,217 1,273,925 1,203,708
119,033 - (119,033) 1,172,002 1,062,351 (109,651)
$ - $ - $ - $ 1,242,219 $ 2,336,276 $ 1,094,057
44
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of
resources and payment of bond principal and interest from
governmental resources.
PUBLIC IMPROVEMENT REVENUE BONDS FUND
This fund is used to account for accumulation of resources and
payment of principal and interest for the Public Improvement
Revenue Bonds, Series 2002.
SALES TAX REVENUE BOND SINKING FUND
This fund is used to account for the accumulation of resources and
payment of principal and interest for the Sales Tax Revenue Bonds,
Series 1989.
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
ALL DEBT SERVICE FUNDS
September 30, 2003
Assets:
Cash and cash equivalents
Total assets
Liabilities and Fund Balances:
Liabilities:
Accrued interest payable
Total liabilities
Fund Balance:
Reserved for debt service
Total liabilities and fund balance
Public
Sales Tax
Improvement
Revenue
Revenue
Bond Sinking
Bonds Fund
Fund
Totals
$ 344,728 $ - $ 344,728
$ 344,728 $ - $ 344,728
344,728 - 344,728
$ 344,728 $ - $ 344,728
45
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL DEBT SERVICE FUNDS
For The Year Ended September 30, 2003
Revenues:
Investment income
Total revenues
Expenditures:
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources:
Operating transfers in
Total other financing sources (uses)
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses
Fund Balances - Beginning of Year
Public
Improvement
Revenue
Bond Fund
Sales Tax
Revenue
Bond Sinking
Fund
$ 1,472 $
1,472
Totals
594 $ 2,066
594 2,066
- 130,000
130,000
227,101 9,665
236,766
227,101 139,665
366,766
(225,629) (139,071)
(364,700)
493,691 92,683 586,374
493,691 92,683 586,374
268,062 (46,388)
76,666 46,388
221,674
123,054
Fund Balances - End of Year $ 344,728 $ - $ 344,728
46
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DEBT SERVICE FUNDS
For The Year Ended September 30, 2003
Revenues:
Investment income
Total revenues
Expenditures:
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources:
Operating transfers in
Total other financing sources
(uses)
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses
Fund Balances - Beginning of Year
Public Improvement Revenue Bond Fund
Variance
Favorable
Budget Actual (Unfavorable)
$ 2,000 $
1,472 $
(528)
2,000
1,472
(528)
275,262
227,101
48,161
275,262
227,101
48,161
(273,262)
(225,629)
47,633
273,262
493,691
220,429
273,262
493,691
220,429
268,062 268,062
76,666 76,666
Fund Balances - End of Year $ - $ 344,728 $ 344,728
47
Sales Tax Revenue Bond Sinking Fund
Variance
Favorable
Budget Actual (Unfavorable) Budget
Totals
Variance
Favorable
Actual (Unfavorable)
$ 1,100 $
594 $
(506) $
3,100 $
2,066 $
(1,034)
1,100
594
(506)
3,100
2,066
(1,034)
139,165
130,000
9,165
139,165
130,000
9,165
750
9,665
(8,915)
276,012
236,766
39,246
139,915
139,665
250
415,177
366,766
48,411
(138,815)
(139,071)
(256)
(412,077)
(364,700)
47,377
138,815
92,683
(46,132)
412,077
586,374
174,297
138,815
92,683
(46,132)
412,077
586,374
174,297
(46,388) (46,388) - 221,674 221,674
46,388 46,388 - 123,054 123,054
$ - $ - $ - $ - $ 344,728 $ 344,728
48
UP
PROPRIETARY FUND TYPES
ENTERPRISE FUNDS
Enterprise 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.
WATER FUND
To account for the provision of water services to City residents and
some out -of -city customers. 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.
SEWER FUND
To account for the provision of services to City residents and some
out -of -city customers. 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.
SANITATION FUND
To account for the provision of garbage and trash removal service to
the residents of the City. All activities necessary to the provision of
these services are accounted for in this fund.
STORMWATER UTILITY FUND
To account for the construction and maintenance of stormwater
drainage systems within the City. All activities necessary to the
provision of this service are accounted for in this fund.
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
ALL ENTERPRISE FUNDS
September 30, 2003
Total
Storm-
Enterprise
Water
Sewer
Sanitation
Water
Funds
Assets:
Current assets:
Cash and cash equivalents
$ 256,090
$ 255,890
$ 317,763
$ 122,227
$ 951,970
Investments
3,920,213
914,405
110,347
600,752
5,545,717
Receivables:
Accounts
237,531
207,748
145,282
46,649
637,210
Interest
9,136
52,031
-
-
61,167
Other
22,538
1,820
-
-
24,358
Interfund receivables
1,021,733
-
-
-
1,021,733
Prepaid items
13,256
29,287
15,592
2,923
61,058
Inventory - materials
32,420
-
-
-
32,420
Total current assets
5,512,917
1,461,181
588,984
772,551
8,335,633
Restricted assets:
Cash and cash equivalents
601,006
906,442
-
-
1,507,448
Investments
6,576,189
10,073,721
-
-
16,649,910
Total restricted assets
7,177,195
10,980,163
-
-
18,157,358
Fixed assets:
Property, plant and equipment
10,405,167
24,665,041
1,071,702
1,051,757
37,193,667
Less: accumulated depreciation
(3,814,640)
(4,763,022)
(791,959)
(146,538)
(9,516,159)
Construction in progress
471,084
31,996
-
64,266
567,346
Total fixed assets - net
7,061,611
19,934,015
279,743
969,485
28,244,854
Other assets:
Deferred charges 130,860 232,641 - - 363,501
Total assets $19,882,583 $ 32,608,000 $ 868,727 $1,742,036 $ 55,101,346
49
Total
Storm-
Enterprise
Water
Sewer
Sanitation
Water
Funds
Liabilities and Fund Equity:
Current liabilities (payable from current assets):
Accounts payable $
168,828
$ 87,360
$ 70,820
$ 7,761
$ 334,769
Accrued expenses
17,467
13,930
7,036
3,059
41,492
Retainage payable
-
-
-
-
-
Interfund payables
-
1,021,733
-
-
1,021,733
Total current liabilities (payable from
current assets)
186,295
1,123,023
77,856
10,820
1,397,994
Current liabilities (payable from restricted assets):
Retainage payable
-
-
-
-
-
Customer deposits
152,246
-
-
-
152,246
Accrued interest
111,855
198,854
-
-
310,709
Revenue bonds payable
-
-
-
-
-
Total current liabilities (payable from
restricted assets)
264,101
198,854
-
-
462,955
Long-term liabilities:
Accrued annual leave
77,336
43,081
24,591
4,601
149,609
Revenue bonds payable
7,104,262
10,175,951
-
-
17,280,213
Total long-term liabilities
7,181,598
10,219,032
24,591
4,601
17,429,822
Total liabilities
7,631,994
11,540,909
102,447
15,421
19,290,771
Fund Equity:
Contributed capital
2,592,697
8,252,325
101,722
136,547
11,083,291
Retained earnings:
Reserved for repairs & replacement
146,218
103,782
-
-
250,000
Reserved for expansion
4,555,151
10,692,479
-
-
15,247,630
Unreserved
4,956,523
2,018,505
664,558
1,590,068
9,229,654
Total retained earnings
9,657,892
12,814,766
664,558
1,590,068
24,727,284
Total fund equity
12,250,589
21,067,091
766,280
1,726,615
35,810,575
Total liabilities & fund equity $19,882,583 $ 32,608,000 $ 868,727 $ 1,742,036 $ 55,101,346
50
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES. EXPENSES
AND CHANGES IN RETAINED EARNINGS
For The Year Ended September 30, 2003
Operating Revenues:
User charges
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Utilities
Dumping fees
Administrative services
Repairs and maintenance
Depreciation and amortization
Professional services
Insurance
Operating supplies
Office expense
Bad debt
Total operating expenses
Operating income (loss)
Nonoperating Revenue (Expenses):
Impact fees from developers
Interest revenue
Interest expense
Total nonoperating revenue
Income (loss) before
operating transfers
Operating Transfers:
Operating transfers in
Operating transfers out
Net operating transfers
Net income (loss)
Retained Earnings - Beginning of Year
Retained Earnings - End of Year
Total
Storm- Enterprise
Water Sewer Sanitation Water Funds
$ 3,362,716 $ 2,275,011 $ 1,612,647 $ 504,732 $ 7,755,106
170,667 24,937 13,542 - 209,146
3,533,383 2,299,948 1,626,189 504,732 7,964,252
856,918
735,536
392,725
120,708
2,105,887
209,744
345,334
1,355
-
556,433
-
11,840
206,974
6,997
225,811
119,429
149,334
35,952
23,502
328,217
308,854
274,822
72,602
18,428
674,706
314,686
533,545
68,255
30,679
947,165
111,067
38,357
573,089
1,251
723,764
28,005
60,944
40,876
3,606
133,431
69,783
66,748
33,803
2,518
172,852
34,021
20,511
6,900
3,685
65,117
11,229
8,740
7,267
3,771
31,007
2,063,736
2,245,711
1,439,798
215,145
5,964,390
1,469,647
54,237
186,391
289,587
1,999,862
1,362,502
4,521,716 -
- 5,884,218
142,888
202,360 3,502
8,118 356,868
(285,417}
167,864) -
- 45[ 3,281)
1,219,973
4,556,212 3,502
8,118 5,787,805
2,689,620 4,610,449 189,893 297,705 7,787,667
(302,070]
(5,048)
(3,365)
(1,683)_
(312,166)
1302,070)
(5,048)
(3,365)
(1,683)
(312,166)
2,387,550
4,605,401
186,528
296,022
7,475,501
7,270,342
8,209,365
478,030
1,294,046
17,251,783
$ 9,657,892 $ 12,814,766 $ 664,558 $ 1,590,068 $ 24,727,284
51
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
ALL ENTERPRISE FUNDS
For The Year Ended September 30, 2003
Total
Storm-
Enterprise
Water
Sewer
Sanitation
Water
Funds
Cash Flows from Operating Activities:
Receipts from customers
$ 3,542,126
$ 2,240,659
$ 1,605,520
$ 504,489
$ 7,892,794
Payments to suppliers
(960,933)
(2,011,692)
(917,758)
(55,776)
(3,946,159)
Payments to employees
1845,710)
(734,209)
(389,293)
(120,297)
f2,089,509j
Net cash provided (used) by operating activities
1,735,483
(505,242)
298,469
328,416
1,857,126
Cash Flows from Non -Capital Financing Activities:
Short term interfund advance
(908,722)
888,492
(5,012)
(1,157)
(26,399)
Operating transfers out
302,070)
(5,048)
3,365
(1,683)
(312,166)
Net cash provided (used) by
non -capital financing activities
(1,210,79Z
883,444
(8,377)
(2,840)
(338,565)
Cash Flows from Capital and Related Financing Activities:
Acquisition and construction of fixed assets
(555,258)
(947,125)
(64,266)
(1,566,649)
Interest paid on bonds and leases
(298,298)
(193,548)
(491,846)
Impact fees received
1,362,502
4,521,716
5,884,218
Net cash provided (used) by
capital and related financing activities
508,946
3,381,043
(64,266)
3,825,723
Cash Flows from Investing Activities
Interest received
142,888
202,360
3,502
8,118
356,868
Investment purchases
(820,783)
(3,418,408)
(1,644
(220,9731
4,461,808)
Net cash provided (used) by investing activities
(677,895)
(3,216,048)
1,858
(212,855y
(4,104,940)
Net Increase in Cash and Cash Equivalents
355,742
543,197
291,950
48,455
1,239,344
Cash and Cash Equivalents at Beginning of Year
501,354
619,135
25,813
73,772
1,220,074
Cash and Cash Equivalents at End of Year
$ 857,096
$ 1,162,332
$ 317,763
$ 122,227
$ 2,459,418
Classified As:
Current assets
$ 256,090
$ 255,890
$ 317,763
$ 122,227
$ 951,970
Restricted assets
601,006
906,442
1,507,448
Total
$ 857,096
$ 1,162,332
$ 317,763
$ 122,227
-$ 2,459,418
52
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Operating income
Adjustments Not Affecting Cash:
Depreciation and amortization
Change in Assets and Liabilities:
Increase in accounts receivable
Increase in prepaids
Increase in inventory
Increase (decrease) in accounts payable
Decrease in accrued expenses
Decrease in retainage payable
Increase in accrued annual leave
Increase in customer deposits
Total adjustments
Net Cash Provided (Used) by Operating Activities
Total
Storm- Enterprise
Water Sewer Sanitation Water Funds
$ 1,469,647 $ 54,237 $ 186,391 $ 289,587 $ 1,999,862
327,567
559,229 68,255 30,679 985,730
(8,825)
(59,289)
(20,669)
(243)
(89,026)
(4,012)
(9,664)
(3,737)
(967)
(18,380)
(10,691)
(10,691)
(36,414)
(552,138)
63,624
7,304
(517,624)
4,016
2,422
1,173
1,645
9,256
(34,581)
(501,366)
-
-
(535,947)
11,208
1,327
3,432
411
16,378
17,568
-
-
-
17,568
265,836
(559,479)
112,078
38,829
(142,736)
$ 1,735,483
$ (505,242) $r.
2� $
328,416
$ 1,857,126
53
i
FIDUCIARY FUND TYPES
TRUST FUNDS
Trust Funds are used to account for assets held by the City in a trustee capacity.
PENSION TRUST FUNDS:
GENERAL EMPLOYEES PENSION TRUST FUND
To account for the accumulation of resources to be used for the retirement
annuities of all full-time permanent employees, except police officers and
firefighters. The City maintains defined benefit and defined contribution plans for
its general employees. Annual contributions made to the defined benefit plan are
in accordance with an actuarial study, whereas, a fixed percentage of employees
salaries is used in determining the annual contribution to the defined contribution
plan.
POLICE OFFICERS PENSION TRUST FUND
To account for the accumulation of resources to be used for the retirement
annuities of all police officers. The state contributes money based upon the
number of police officers and the City contributes an amount determined by an
actuarial study.
FIREFIGHERS PENSION TRUST FUND
To account for the accumulation of resources to be used for the retirement
annuities of all firefighters. The state contributes money based upon the number
of firefighters and the City contributes an amount determined by an actuarial
study.
NON -EXPENDABLE TRUST FUND:
METERY PERPETUAL CARE FUND
To account for monies provided by people buying lots in the City cemetery. The
principal must be kept separate and apart from all other funds, but the interest
may be transferred to the General Fund to defray the cost of cemetery operation
and maintenance.
EXPENDABLE TRUST FUND:
OMMUNITY REDEVELOPMENT FUND
To account for funds administered by Downtown Clermont Redevelopment
Agency. The agency is authorized to use the funds to finance community
redevelopment projects within the downtown area.
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
TRUST FUNDS
September 30, 2003
Expendable
Trust
Fund
Community
Redevelopment
Fund
Assets:
Pension Nonexpendable
Trust
Trust
Funds
Fund
Cemetery
Public
Perpetual
Employees
Care
Cash and cash equivalents
$
26,074
$ -
$
28,090
$ 54,164
Investments
-
6,538,159
386,630
6,924,789
Interfund receivable
-
-
-
-
Total assets
$
26,074
$6,538,159
$
414,720
$6,978,953
Liabilities:
Accounts payable
$
-
$ -
$
-
$ -
Interfund payable
14,680
-
-
14,680
Interfund advances
29,360
-
-
29,360
44,040
-
-
44,040
Fund Balances:
Unreserved
(17,966)
-
-
(17,966)
Reserved for employees' pension benefits
-
6,538,159
-
6,538,159
Reserved for cemetery care
-
-
414,720
414,720
Total fund balances
(17,966)
6,538,159
414,720
6,934,913
Total liabilities and fund balances
$
26,074
$ 6,538,159
$
414,720
$6,978,953
54
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF PENSION FUND NET ASSETS
September 30, 2003
_General Employees
Defined Defined Police Firefighter
Benefit Contribution Pension Pension Totals
Assets:
Investments (at fair value) $ 863,029 $ 1,869,225 $ 2,762,688 $ 1,043,217 $ 6,538,159
Receivables:
Interfund - - - - -
Total assets 863,029 1,869,225 2,762,688 1,043,217 6,538,159
Liabilities:
Accounts payable - - - -
Total liabilities - - - - -
Net Assets Held in Trust for
Pension Benefits (A schedule
of funding progress for each
Plan is presented on page 30) $ 863,029 $ 1,869,225 $ 2,762,688 $ 1,043,217 $ 6,538,159
55
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
For The Year Ended September 30, 2003
General EmDlovees
Defined
Defined
Police
Firefighter
Benefit
Contribution
Pension
Pension
Totals
Additions:
Contributions:
Employer
$ 5,853
$ 268,221
$ -
$ -
$ 274,074
Plan Members
-
-
39,845
5,961
45,806
State
-
-
152,815
98,337
251,152
Total contributions
5,853
268,221
192,660
104,298
571,032
Investment income:
Investment income (loss)
100,278
135,362
289,967
127,881
653,488
Less: investment expense
(4,927)
{9,037)
(8,236)
(5,902)
(28,102)
Net investment income (loss)
95,351
126,325
281,731
121,979
625,386
Total additions
101,204
394,546
474,391
226,277
1,196,418
Deductions:
Benefits/distributions
91,130
16,213
80,038
443
187,824
Total deductions
91,130
16,213
80,038
443
187,824
Net Increase (Decrease)
10,074
378,333
394,353
225,834
1,008,594
Net Assets Held in Trust for
Pension Benefits:
Beginning of year
End of year
852,955 1,490,892 2,368,335 817,383 5,529,565
$ 863,029 $ 1,869,225 $ 2,762,688 $ 1,043,217 $ 6,538,159
ACCOUNT GROUPS
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP
This is a self -balancing account group used to record the fixed assets
of the City that are not used in proprietary fund operations or
accounted for in trust funds.
CITY OF CLERMONT, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES
September 30, 2003
General Fixed Assets:
Land $ 2,759,586
Buildings 8,786,904
Improvements other than buildings 9,454,869
Equipment and vehicles 4,375,466
Construction in progress 72,933
Total General Fixed Assets $ 25,449,758
Revenue Bonds $ 8,328,566
Federal, state and local grants 1,621,247
General Fund revenues 7,771,916
Special Revenue Fund revenues 6,897,441
Gifts and other 830,588
Total Investment in General Fixed Assets $ 25,449,758
57
CITY OF CLERMONT, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
For The Year Ended September 30, 2003
Improvements
Other Than
Construction
Land
Buildings
Buildings
Equipment
In Progress
Totals
General Government
$ 300,954
$4,778,228
$ -
$ 977,578
$ 69,083
$ 6,125,843
Public Safety
183,458
2,238,417
-
2,504,531
-
4,926,406
Physical Environment
47,168
728,159
107,574
165,063
-
1,047,964
Transportation
-
-
3,981,154
145,707
-
4,126,861
Culture & Recreation
1,999,898
956,830
5,219,768
561,153
3,850
8,741,499
Older assets not
maintained by function
228,108
85,270
146,373
21,434
-
481,185
Total
$ 2,759,586
$8,786,904
$ 9,454,869
$ 4,375,466
$ 72,933
$25,449,758
Deletions
Balance
and
Balance
10-01-02
Additions
Transfers
09-30-03
General Government
$ 1,669,099
$4,456,744 $ -
$ 6,125,843
Public Safety
4,643,136
361,918 (78,648)
4,926,406
Physical Environment
1,032,880
15,084 -
1,047,964
Transportation
3,861,676
265,185 -
4,126,861
Culture & Recreation
8,551,928
189,571 -
8,741,499
Older assets not
maintained by function
481,185
- -
481,185
Total
$20,239,904
$5,288,502 $ (78,6481
$25,449,758
W
STATISTICAL SECTION
Statistical tables differ from financial statements because they cover
more than one fiscal year and may present non -accounting data.
These tables reflect social and economic data, financial trends, and
the fiscal capacity of the City.
CITY OF CLERMONT, FLORIDA
COMMENTS ON THE STATISTICAL SECTION
SEPTEMBER 30, 2003
The following Statistical Tables recommended by the National
Council on Governmental Accounting are not included for the reasons
stated below:
• The Legal Debt Margin Computation
Table is not presented because there is
no law or ordinance that sets the
maximum amount of debt the City is
legally permitted to issue.
CITY OF CLERMONT, FLORIDA
EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
FISCAL
GENERAL
PUBLIC
PHYSICAL
YEAR
GOVERNMENT
SAFETY
ENVIRONMENT
1993-94
$420,678
$1,017,962
$144,789
1994-95
492,751
1,063,691
134,633
1995-96
561,876
1,257,255
112,794
1996-97
636,895
1,299,427
126,409
1997-98
808,901
1,6331630
152,476
1998-99
1,059,558
1,733,444
137,219
1999-00
942,498
3,049,106
134,486
2000-01
1,098,769
3,349,348
211,801
2001-02
2,143,890
3,397,986
41,611
2002-03
5,802,367
3,968,244
35,237
(1) Includes General, Special Revenue, and Capital Projects Funds.
Excludes Debt Service.
(2) Community Development Block Grant expenditures were included in
the 1992-93, 1995-96, 1996-97, 1997-98 and 1998-99 Fiscal Years.
TABLE 1
(2)
ECONOMIC
HUMAN
CULTURE AND
TRANSPORTATION
ENVIRONMENT
SERVICES
RECREATION
TOTAL
$257,539
$14,065
$17,034
$573,517
$2,445,584
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
61
CITY OF CLERMONT, FLORIDA
REVENUE BY SOURCE (1)
LAST TEN FISCAL YEARS
LICENSES
CHARGES
FISCAL
AND
INTER-
FOR
YEAR
TAXES
PERMITS
GOVERNMENTAL
SERVICES
1993-94
$1,983,016
$39,910
$505,432
$38,402
1994-95
2,142,822
67,549
576,484
57,241
1995-96
2,377,962
84,260
665,899
32,537
1996-97
2,497,102
97,347
988,581
46,354
1997-98
2,769,826
133,595
1,012,582
42,459
1998-99
3,171,446
149,702
872,081
44,336
1999-00
3,911,066
188,517
959,751
60,148
2000-01
4,873,847
211,101
930,028
36,613
2001-02
5,677,448
252,702
1,407,363
367,279
2002-03
6,733,867
277,264
1,152, 050
378,425
(1) Includes General, Special Revenue, Debt Service and Capital Projects Funds.
A
TABLE 2
FINES
INTEREST
AND
ON
IMPACT
FORFEITURES
INVESTMENTS
FEES
MISCELLANEOUS
TOTAL
$91,066
$9,906
$17,681
$122,270
$2,807,683
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
63
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
1993-94
1993
$190,036,425
$171,032,783
2.979
1994-95
1994
206,921,182
186,229,064
2.979
1995-96
1995
228,727,934
205,855,141
2.979
1996-97
1996
236, 824,197
213,141,778
2.979
1997-98
1997
274,964,642
247,468,178
2.979
1998-99
1998
324,049,311
291,644,380
2.979
1999-00
1999
396,645,279
356,980,751
3.479
2000-01
2000
500,572,450
450,515,205
3.729
2001-02
2001
634,697,383
571,227,645
3.729
2002-03
2002
800,152,736
720,137,462
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.
64
TABLE 3
RATIO OF
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 LEVY
$509,504
$494,226
97.0%
631
$494,857
97.1 %
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%
65
CITY OF CLERMONT, FLORIDA
PROPERTY TAX RATES - DIRECT AND ALL OVERLAPPING GOVERNMENTS (1)
LAST TEN FISCAL YEARS (2)
LAKE
COUNTY
FISCAL TAX LAKE MSTU
YEAR YEAR CITY COUNTY STORMWATER
1993-94
1993
2.979
5.135
0.000
1994-95
1994
2.979
5.135
0.000
1995-96
1995
2.979
4.927
0.000
1996-97
1996
2.979
4.909
0.000
1997-98
1997
2.979
4.733
0.000
1998-99
1998
2.979
4.733
0.000
1999-00
1999
3.479
4.733
0.100
2000-01
2000
3.729
5.117
0.200
2001-02
2001
3.729
5.117
0.300
2002-03
2002
3.729
5.917
0.400
(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.
TABLE 4
LAKE
COUNTY
LAKE COUNTY
SOUTH LAKE
ST. JOHNS RIVER
SCHOOL
WATER
HOSPITAL
WATER MANAGEMENT
DISTRICT
AUTHORITY
DISTRICT
DISTRICT
TOTAL
8.938
0.5170
2.0000
0.470
20.0390
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
67
CITY OF CLERMONT, FLORIDA TABLE 5
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DEBT
September 30, 2003
The City of Clermont did not have any overlapping debt at the above fiscal year end.
CITY OF CLERMONT, FLORIDA
WATER AND SEWER CUSTOMER DATA
LAST TEN FISCAL YEARS
NUMBER OF CUSTOMERS
FISCAL
WATER
YEAR
RESIDENTIAL
COMMERCIAL
1993-94
2526
385
1994-95
3136
392
1995-96
3483
391
1996-97
3987
439
1997-98
4549
447
1998-99
5009
490
1999-00
5992
531
2000-01
7303
579
2001-02
8461
644
2002-03
10529
723
SEWER
RESIDENTIAL
COMMERCIAL
1931
330
1978
350
2334
358
2770
386
3099
388
3328
443
3928
458
5001
511
6243
581
7650
673
Source: Water and Sewer Customer Data Reports as of September 30
TABLE 6
ANNUAL
WATER
USAGE
(GAL)
493,821,000
482,962,000
630,763,000
833,834,000
1,087,078,000
1,146,663,000
1,394,359,000
1,365,196,000
1,299,701,000
1,338,818,000
CITY OF CLERMONT, FLORIDA
UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS
LAST TEN FISCAL YEARS
TOTAL
(1)
FISCAL
SYSTEM
OPERATING
YEAR
REVENUES
EXPENSES
1993-94
$1,315,271
$956,638
1994-95
1,569,180
948,234
1995-96
1,997,673
1,038,809
1996-97
2,277,479
1,240,707
1997-98
2,641,987
1,514,280
1998-99
2,968,098
1,737,216
1999-00
3,832,369
2,122,938
2000-01
5,082,750
2,236,146
2001-02
5,473,607
2,952,556
2002-03
6,178,579
3,461,216
(1) Excludes interest expense and depreciation.
(2) Maximum debt service in any subsequent year is $1,304,315
TABLE 7
(2)
DEBT
NET SERVICE
REVENUES REQUIREMENTS COVERAGE
$358,633
$290,083
1.24%
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%
71
CITY OF CLERMONT, FLORIDA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
TABLE 8
(2)
(3)
FISCAL
(1)
SCHOOL
UNEMPLOYMENT
YEAR
POPULATION
ENROLLMENT
RATE
1993-94
7,174
1,629
8.1 %
1994-95
7,233
1,787
5.0%
1995-96
7,291
2,381
5.2%
1996-97
7,582
2,180
3.1 %
1997-98
8,202
2,412
2.2%
1998-99
8,861
3,683
2.7%
1999-00
9,455
3,841
2.6%
2000-01
10,571
4,500
3.4%
2001-02
13,718
4,616
4.7%
2002-03
15,391
4,630
4.6%
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.
72
CITY OF CLERMONT, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(1)
COMMERCIAL
CONSTRUCTION
(1)
RESIDENTIAL
CONSTRUCTION
FISCAL
# OF
# OF
YEAR
UNITS
VALUE
UNITS
VALUE
1993-94
2
$402,000
26
$2,091,200
1994-95
2
450,000
19
1,412,837
1995-96
17
6,735,881
157
10,386,535
1996-97
14
3,340,805
289
17,797,703
1997-98
13
24,686,500
333
21,414,385
1998-99
5
17,725,000
492
34,375,122
1999-00
11
22,396,000
711
58,829,964
2000-01
17
17,264,099
884
82,040,352
2001-02
39
52,342,866
829
77,470,156
2002-03
22
18,757,595
959
124,837,420
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.
73
TABLE 9
ASSESSED TAXABLE
(2)
PROPERTY VALUE
BANK
(3)
(4)
DEPOSITS
TAXABLE
NONTAXABLE
$1,701,038,000
$171,032,783
$56,272,383
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
74
CITY OF CLERMONT, FLORIDA
PRINCIPAL TAXPAYERS
TAXPAYER
South Lake Hospital, Inc.
C/O Orlando Regional Healthcare
PO Box 562008
Orlando, FL 32856
Clermont Center LTD
20636 Biscayne Blvd
Aventura, FL 33180
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
Lennar Land Partners
151 S Wymore Rd Ste 4000
Altamonte Springs, FL 32714
Lennar Homes Inc.
151 S Wymore Rd Ste 4000
Altamonte Springs, FL 32714
Sprint -Florida Incorporated
PO Box 12913
Shawnee Mission, KS 66212
Florida Power Corp
PO Box 14042
St Petersburg, FL 33733
HEP-8-Cler LC
8771 College Pkwy Ste 101
Ft Myers, FL 33919
Mercator Properties, Inc.
230 Mohawk Rd.
Clermont, FL 34711
TABLE 10
PERCENTAGE
ASSESSED OF TOTAL
VALUATION ASSESSED
AS OF 1/1/03 VALUATION
$11,416,774 1.59%
11,273,095 1.57%
9,561,237 1.33%
8,824,734 1.23%
8,813,291 1.22%
8,201,625 1.14%
7,966,530 1.11 %
6,499,628 0.90%
6,342,634 0.88%
5,530,682 0.77%
TOTAL $84,430,230 11.72%
Source: 2003 City of Clermont Tax Roll, prepared by the Lake County Property
Appraiser's office.
75
CITY OF CLERMONT, FLORIDA
EMPLOYER
South Lake Hospital
Lake County School System
Target
Westminister Care of Clermont
Publix
City of Clermont
Home Depot
CBS Builders Supply Inc.
Winn Dixie
K Mart
LARGEST EMPLOYERS
INDUSTRY
TABLE 11
NUMBER OF
EMPLOYEES
Health Care
715
Education
501
Retail
230
Retirement and Nursing
200
Grocery
200
Municipality
188
Retail
165
Construction Supplies
158
Grocery
125
Retail
100
76
CITY OF CLERMONT, FLORIDA
SCHEDULE OF INSURANCE COVERAGES
SEPTEMBER 30, 2003
POLICY EXPIRATION
TYPE OF COVERAGE & INSURER NUMBER DATE
I IARII ITY
Florida Municipal Liability FMIT 101 9/30/2003
Self Insurer's Program
WORKERS COMPENSATION
Florida Municipal Self FMIT 101 9/30/2003
Insurers Fund
FIRE AND EXTENDED COVERAGE
Florida Municipal Property FMIT 101 9/30/2003
Self -Insurers Program
77
TABLE 12
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 $33,780,700
78
CITY OF CLERMONT, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 2003
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
11.5 square miles
92.90
1,056
1
3
34
6
13
1,064
2
31
3
2
245
4,630
11,252
4,280,000 gallons
88.74
39.05
9.11
79
Recreation and Culture
Number of Parks
Scenic Linear Trail
Fishing Piers
Number of Libraries
City Employees
Full -Time
Part -Time
TABLE 13
22 with 101.5 acres
3.5 miles
4
173
15
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11
lMCDIRMIT DAVIS
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 Commissioners
City of Clermont, Florida
We have audited the general purpose financial statements of the City of Clermont, Florida, as of
and for the year ended September 30, 2003, and have issued our report thereon dated December
5, 2003. 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 general purpose 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 December
5, 2003.
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 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 City of Clermont, Florida in a separate
letter dated December 5, 2003.
MCDIFJ�41T DAVIS PUCKETT & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
605 E. ROBINSON STREET, SUITE 635 •ORLANDO, FLORIDA 32801
TELEPHONE 407-843-5406 - FAx 407-649-9339 - EMAIL: INFOCMDPCPA.COM
MEMBERS: PRIVATF COMPANIES PRACTICE SECTION ° AMFRICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
81
This report is intended solely for the information and use of management, the City Commission 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.
McDIRMIT DAVIS PUCKETT & COMPANY, LLC
December 5, 2003
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REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE MAJOR
PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor and City Commissioners
City of Clermont, Florida
Clermont, Florida
Compliance
We have audited the compliance of the City of Clermont, Florida with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement, that are applicable to the major federal program for the year ended
September 30, 2003. The City of Clermont's major federal program is identified in the summary of
auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to its
major federal program is the responsibility of the City of Clermont, Florida management. Our
responsibility is to express an opinion on the City of Clermont, Florida compliance based on our
audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those
standards, and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about City of Clermont, Florida
compliance with those requirements and performing such other procedures, as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination on the City of Clermont, Florida
compliance with those requirements.
In our opinion, the City of Clermont, Florida, complied, in all material respects, with the
requirements referred to above that are applicable to its major federal program for the year ended
September 30, 2003.
MCDIRMIT DAVIS PUCKETT & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801
TELEPHONE 407-843-5406 e FAx 407-649-9339 - EMAIL: INFO@MDPCPA.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - FLORIDA INSTITUTE. OF CERTIFIED PUBLIC ACCOUNTANTS
83
Internal Control Over Compliance
The management of the City of Clermont, Florida is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts and
grants applicable to federal programs. In planning and performing our audit, we considered the
City of Clermont, Florida internal control over compliance with requirements that could have a
direct and material effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on
internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control 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 noncompliance with applicable requirements of
laws, regulations, contracts and grants that would be material in relation to a major state program
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 compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, the City, the Auditor
General of the State of Florida and federal awarding agencies and is not intended to be and
should not be used by anyone other than these specified parties.
December 5, 2003
EMI
CITY OF CLERMONT, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2003
Federal Agency/Pass through Ent!
Federal Program
U.S. Department of Housing and
Urban Development
Florida Department of Community Affairs -
Small Cities Community
Development Block Grant
U.S. Department of Justice
Florida Department of Law Enforcement -
Byrne Formula Grant
Total expenditures of federal
awards
CFDA Contract
Number Grant Number Expenditures
01 DB-79
14.228 06-45-01-005 $320,688
16.579 03-CJ-5A-06
45-02-094 11,886
$332,574
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CITY OF CLERMONT, FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2003
Note 1 - Basis of Presentation:
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of the City of Clermont, Florida and is presented on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. The
information in this schedule is presented in accordance with the requirements of OMB Circular
A-133, Audits of States, Local Governments, and Non -Profit Organizations.
0
CITY OF CLERMONT, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS -
FEDERAL PROGRAM
Year Ended September 30, 2003
A. Summary of Auditor's Results
1. The auditor's report expresses an unqualified opinion on the general purpose financial
statements of the City of Clermont, Florida.
2. No instances of noncompliance material to the financial statements of the City of
Clermont, Florida were disclosed during the audit.
3. The auditor's report on compliance for the major federal program for the City of
Clermont, Florida, expresses an unqualified opinion.
4. The program tested as major program included the following:
Federal Prociram Federal CFDA No.
U.S. Department of Housing and Urban
Development
Community Development Block Grant 14.228
5. The threshold for distinguishing Type A and Type B programs/projects was $300,000 for
major federal programs.
87