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Comprehensive Annual Financial Report - 1999-2000Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2000 Fire Station No. 1 Fire Station No. 2 City of Clermont, Florida Pictured on the Front Cover is the City of Clermont's new Fire Station No. 1 on State Road 50 above, and Fire Station No. 2 on Hartwood Marsh Road near Highway 27 below. The fire stations are scheduled to open in March, 2001, CITY OF CLERMONT, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2000 Prepared by: Finance Department Joseph E. Van Zile Finance Director CITY OF CLERMONT, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2000 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal....................................................................................... A-1 OrganizationalChart .................................................................................... A-13 Listing of City Officials.................................................................................. A-14 Certificate of Achievement........................................................................... A-15 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT Independent Auditor's Report .............................................................. B-1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups....... B-2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances — All Governmental Fund Types and Expendable Trust Fund ................................................ B-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General, Budgeted Special Revenue and Debt Service Funds .................... B-7 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances —All Proprietary Fund Types and Nonexpendable Trust Funds ............................... B-9 Combined Statement of Changes in Plan Net Assets — Pension Trust Fund...................................................................... B-10 Combined Statement of Cash Flows — All Proprietary Fund Types and Nonexpendable Trust Funds ...................................... B-11 Notes to Financial Statements........................................................... B-13 TABLE OF CONTENTS FINANCIAL SECTION CONTINUED COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS General Fund: Comparative Balance Sheet.............................................................. B-40 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual .............................................. B-41 Schedule of Revenues — Budget and Actual ..................................... B-42 Schedule of Expenditures — Budget and Actual ................................ B-43 Special Revenue Funds: Combining Balance Sheet................................................................. B-46 Combining Statement of Revenues, Expenditures and Changes in Fund Balance............................................................ B-47 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Infrastructure Fund............ B-48 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Impact Fee Fund ............... B-49 Sales Tax Revenue Bond Sinking Fund: Comparative Balance Sheet.............................................................. B-50 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual .............................................. B-51 Building Construction Fund: Comparative Balance Sheet.............................................................. B-52 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual .............................................. B-53 ii TABLE OF CONTENTS FINANCIAL SECTION CONTINUED COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS CONTINUED Enterprise Funds: Combining Balance Sheet................................................................. B-54 Combining Statement of Revenues, Expenses and Changes in Retained Earnings........................................................................ B-56 Combining Statement of Cash Flows ................................................ B-57 Group Self Insurance Fund: Comparative Balance Sheet.............................................................. B-59 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings........................................................................ B-60 Comparative Statement of Cash Flows ............................................. B-61 Trust Funds: Combining Balance Sheet — Fiduciary Fund Types ........................... B-62 Comparative Balance Sheet — Expendable Trust Fund — Community Redevelopment Fund ................................................ B-63 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance — Expendable Trust Fund — Community Redevelopment Fund ................................................ B-64 Comparative Statement of Plan Net Assets — Pension Trust Funds.................................................................... B-65 Combining Statement of Changes in Plan Net Assets — Pension Trust Funds.................................................................... B-66 Comparative Balance Sheet — Nonexpendable Trust Fund — Cemetery Perpetual Care Fund ................................................... B-67 ni TABLE OF CONTENTS FINANCIAL SECTION CONTINUED COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS CONTINUED Comparative Statement of Revenues, Expenses and Changes in Fund Balance — Nonexpendable Trust Fund — Cemetery Perpetual Care Fund ................................................... B-68 Statement of Cash Flows — Nonexpendable Trust Fund — Cemetery Perpetual Care Fund ................................................... B-69 Account Groups: Schedule of General Fixed Assets by Sources .................................. B-70 Schedule of General Fixed Assets by Function ................................. B-71 Schedule of Changes in General Fixed Assets by Function .............. B-72 Schedule of General Long -Term Debt ............................................... B-73 STATISTICAL SECTION Comments on the Statistical Section.............................................................. C-1 Expenditures by Function — Last Ten Fiscal Years ........................................ C-2 Revenue by Source — Last Ten Fiscal Years ................................................. C-4 Property Tax Levies, Tax Collections and Assessed Valuations — Last Ten Fiscal Years........................................................... C-6 Property Tax Rates — Direct and All Overlapping Governments — LastTen Fiscal Years............................................................................... C-8 Water and Sewer Customer Data — Last Ten Fiscal Years .......................... C-10 iv TABLE OFCONTENTS STATISTICAL SECTION CONTINUED Utility Revenue Bond Coverage — All Utility Revenue Bonds — Last Ten Fiscal Years............................................................................. C-11 Demographic Statistics — Last Ten Fiscal Years .......................................... C-13 Property Value, Construction and Bank Deposits — LastTen Fiscal Years............................................................................. C-14 Principal Taxpayers ............................... LargestEmployers....................................................................................... C-17 Schedule of Insurance Coverage................................................................. C-18 Miscellaneous Statistical Data...................................................................... C-20 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........................................................ D-1 Independent Accountant's Report on Compliance with Specified Requirements........................................................................................... D-2 Management Assertion Report ....................................................................... D-3 Independent Auditor's Report on Schedule of State Financial Assistance................................................................................................ D-4 Schedule of State Financial Assistance......................................................... D-5 Management Letter........................................................................................ D-6 Response to Management Letter................................................................... D-7 INTRODUCTORY SECTION This section contains the letter of transmittal, organizational chart, listing of city officials and certificate of achievement. CITY OF CLERMONT Office of the Finance Director March 9, 2001 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, 2000, 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 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 11.26 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 northeast 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 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 is the largest financial supporter of a private library that serves city residents, as well as residents of the surrounding area. 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. The concept of reasonable assurance recognizes that: 1. The cost of control should not exceed the benefits likely to be derived; and A-2 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. A-3 GENERAL FUND The General Fund encompasses the general government functions of the City and all other functions not accounted for in other separate funds. Unreserved, undesignated fund balance increased 98.4% from $736,358 to $1,460,924. 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: 1999-2000 Amount % of total 1998-1999 Amount % of total % Inc./Dec. Over 1998-99 Taxes $3,312,753 51.8% $2,623,966 57.3% 26.2 % Licenses and Permits 188,517 3.0 149,702 3.2 25.9 Intergovernmental 959,751 15.0 838,118 18.3 4.5 Charges for Services 60,148 0.9 44,336 1.0 ]35.7 Fines and Forfeitures 174,044 2.7 108,720 2.3 60.1 Miscellaneous Revenues Transfers In 339.369 1,065,347 5.3 16.6 135,550 283,337 3.0 - 6.2 150.4 276.0 Debt Proceeds 300,000 4.7 397,000 8.7 (24.4) Total $6,399,929 10001'0 $4,580,729 100% 39.7% General Fund revenues increased 39.7% from $4,580,729 to $6,399,929 primarily due to significant increases in Taxes, Miscellaneous Revenues and Transfers -In categories. Taxes increased primarily due to an increase in franchise fees, utility service taxes and ad valorem revenues. Tax revenue increases were primarily the result of growth, as is documented in Table 8 of the Statistical Section of this report. Ad valorem tax revenues also increased due to a .50 mil increase in the City's millage rate from 2.979 to 3.479. The millage increase was necessary in order to provide finding for the staffing of full- time firefighters. Despite the millage increase, Clermont continues to enjoy being one of the lowest taxed communities in Central Florida. Miscellaneous Revenues increased primarily due to contributions from the South Lake Hospital ($100,000) toward the purchase of a fire truck and a contribution from the South Lake Foundation ($42,000) toward the construction of Hancock Park. Transfers -In increased as a result of various capital outlay projects being financed by other funds. A-4 Expenditures and other financing uses of the current fiscal year as compared with those of the previous year are as follows: 1999-2000 Amount % of total 1998-1999 Amount % of total % IncJDec. Over 1998-99 General Government $883,788 15.5% $1,020,864 22.4% (13.4)% Public Safety 2,455,502 42.9 1,733,444 38.0 41.7 Physical Environment 134,486 2.4 137,219 3.0 (2.0) Transportation 465,752 8.1 419,830 9.2 10.9 Economic Environment 25,586 0.4 7,547 0.2 239.0 Human Services 24,914 0.4 25,794 0.6 (3.4) Culture & Recreation 1,713,375 30.0 1,214,759 26.5 41.0 Transfers Out 14,961 .3 4,419 .1 238.6 Total $5,718,364 100% $4,563,876 100% 25.3% General Fund expenditures increased 25.3% from $4,563,876 to $5,718,364 primarily due to significant increases in the Public Safety and Culture & Recreation categories. Public Safety increased primarily due to the staffing of full-time firefighters ($123,573) and the purchase of a tower/ladder fire truck and mini -pumper fire truck ($494,654). Culture & Recreation increased due to the Waterfront Park Improvements ($173,147), McKinney Park Pavilion ($70,711), and Hancock Park ($506,968) capital outlay projects. Without these expenditures, total expenditures would have decreased by 5%. 1 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 States Sales Tax until December 2002, may only be expended on items pertaining to the construction of fixed capital outlay. Infrastructure surtax funds were used in the fiscal year 1999-00 for various engineering and construction related expenditures for sidewalk and street projects and annual debt service associated with the 1989 Sales Tax Revenue Bond issue. IMPACT FEE FUND The Impact Fee Fund accounts 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. A-5 Comparative impact fee amounts for the last three fiscal years are as follows: 1999-2000 1998-1999 1997-1998 Police Impact Fees $201,944 $37,286 $26,808 Fire Impact Fees $237,720 $46,939 $35,371 Recreation Impact Fees $556,481 ; $156,187 $138,781 Total Impact Fees $996,145 _ $240,412 $200,960 Total impact fees increased 314% from $240,412 to $996,145 due to an increase in the City's impact fee rates, effective December 1999, as well as growth, as is documented in Table 8 of the statistical section of this report. Police and fire impact fees were used to provide partial funding for the purchase of various equipment items and vehicles. in addition, police and fire impact fee credits were issued to a developer toward the construction of Fire Station #2. Recreation impact fees were used to provide partial funding for the Waterfront Park Improvements, McKinney Park Pavilion, and Hancock Park construction projects. BLOCK GRANT FUND The City received a $600,000 Community Development Block Grant from the U.S. Department of Housing and Urban Development in fiscal year 1995-96. As of September 30, 2000, there is a mortgage receivable balance of $210,006. This receivable is amortized over a 5-year period from when the mortgage was signed. The receivable will be fully amortized by the end of fiscal year 2002-03. DEBT SERVICE FUND 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. CAPITAL PROJECT FUND The Building Construction Fund was established in the 1999-2000 fiscal year to account for the financial resources and related expenditures pertaining to the construction of Fire Station #1 and anew City Hall. Capital expenditures pertaining to the Fire Station #1 project consist of land acquisition, architectural services and construction costs ($593,604). City Hall expenditures consist of a space needs analysis and architectural design services ($57,710). Financing for the projects is provided through a $2,000,000 Lire of Credit financing arrangement. A-6 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: 1999-2000 1998-1999 1997-1998 Operating Revenues $2,124,341 $1,640,642 $1,362,906 Operating Expenses $1,367,508 $1,232,089 $1,123,451 Operating Income $756,833 $408,553 $239,455 Net Working Capital $1,417,209 $879,491 $833,503 Debt Service Coverage (Combined Water/Sewer) 2.36% 1.69% 1.59% Operating revenues and expenses increased 29.5% and 11.0% respectively from 1998- 1999 to 1999-2000, primarily due to servicing the expanding East Water System customer base. The east water system customer base has increased from 2,278 customers in September 1999 to 2,980 as of September 2000. 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: 1999-2000 1998-1999 1997-1998 Operating Revenues $1,323,239 $1,162,550 $1,094,321 Operating Expenses $1,337,598 $1,056,058 $939,820 Operating Income (Loss) ($14,359) $106,492 $154,501 Net Working Capital $427,105 $541,091 $598,185 Debt Service Coverage (Combined Water/Sewer) 2.36% 1.69% 1.59% Operating revenues and expenses increased 13.8% and 26.7% respectively from 1998- 1999 to 1999-2000 primarily due to servicing the expanding East Sewer System customer base. The east sewer system customer base has increased from 1,193 customers in September 1999 to 1,483 as of September 2000. A-7 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: 1999-2000 1998-1999 1997-1998 Operating Revenues $889,531 $727,273 $660,841 Operating Ex enses $961,246 $851,159 $738,998 Operating Income (Loss) ($71,715) 1 ($123 886) ($78,157) Net Working Capital $112,775 1 $142,806 $217,648 Operating revenues and expenses increased 22.3% and 12.9% respectively from 1998- 1999 to 1999-2000. After conducting a sanitation service rate study during fiscal year 1999-2000, sanitation rates were raised from $17.90 per month to $20.00 in April 2000 and to $21.50 in October 2000. Increases were necessary to offset rising disposal costs and major capital equipment replacement. 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: 1999-2000 1998-1999 1997-1998 _Operatin Revenues $183,271 $156,864 $151,244 Operating Expenses $133,057 $130,569 $129,806 Operating Income $50,214 $26,295 1 $21,438 Net Working Capital $123,249 $135,721 $103,759 During fiscal year 1999-00, the City used a portion of the utility fees to maintain the existing stormwater drainage retention system. The remaining funds were held in reserve for major stormwater drainage projects to be performed in the future. INTERNAL SERVICE FUND 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. A-8 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 1999-00 land was purchased to provide additional parking for the business district. 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, 2000, the general fixed assets of the City totaled $14,873,151. 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, Commercial Paper and in United States Treasury securities. The overnight repurchase agreements are in relation to a 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. A-9 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. I DEBT ADMINISTRATION ! The City has the following long-term debt issues outstanding on September 30, 2000. ➢ A long-term note issued in 1980 to finance the construction of the Library Building ➢ A Sales Tax Revenue Bond issued in 1989 to provide funding for the development of the Palatlakaha Recreation Area and construction of the Public Services Complex and Police Department Building. ➢ A Water and Sewer Revenue Refunding Bond issued in 1993 to refinance two previously issued Water and Sewer Revenuc Bonds. ➢ A Water and Sewer Revenue Bond Anticipation Note issued in 1996 to refinance a 1995 line of credit financing as well as to provide additional funding for major East Water and Sewer System improvements. ➢ 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 seller -financed mortgage that was obtained for the purchase of land for the Downtown Redevelopment District. ➢ A Line of Credit issued in 2000 to provide funding for the construction of Fire Station #1 and for the design of the new City Hall facility. I RISK MANAGEMENT 1 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. -10 FINANCIAL POSITION AND FUTURE PROSPECTS The overall financial position of the City is good, however, the pressures placed on the City services by the recent growth of the City requires careful short and long term planning. The City's tax base is expanding due to recent annexations and subsequent development is providing additional revenues. Along with this additional development comes increased demands on all City services. The revenue stream created by growth is usually several months behind the demand for services, which places additional pressures on all departments to have the ability to continue to provide the necessary level of service within budget constraints. Fortunately, the City currently enjoys one of the area's lowest ad valorem millage rates and charges for service are within acceptable ranges. This allows for necessary adjustments in the future to meet the demands for continued and expanded services at acceptable levels. We must carefully monitor the economy as it relates to growth so as not to expand too quickly while continuing to budget adequately for the continuance of services at a level all of our residents have come to enjoy. A combination of adequate planning, conservative budgeting, and sound management practices should help maintain the City's financial stability. CERTIFICATE OF ACHIEVEMENT 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, 1999. 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 twelve 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. A-11 INDEPENDENT AUDIT Florida Statutes and the City Charter require an annual financial audit of the financial statements of the City of Clermont by ar. 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, G�✓4144,��4---� Wa Saunders City Manager Joseph E. an Zile Finance Director A-12 City of Clermont, Florida Organizational Chart Citizens City Attorney Clermont City Council Committees City Manager Planning Recreation Police Fire Public Services Finance Engineering CID Inspections Transportation Financial Reporting Occupational Licenses Programs Inspections Traffic Division Dive Team Parks Utility Billing Permitting Mapping Road Patrol Public Fire Water Treatment Accounts Payable Code Enforcement Water System Education and Distribution Improvements Communications Sewer Collection Personnel/Payroll Animal Control Wastewater System and Treatment Improvements Records Stormwater Risk Management Zoning Stormwater Drainage Management Sanitation Budgeting A-13 Mayor Mayor Pro-Tem Council Member Council Member Council Member CITY OF CLERMONT, FLORIDA LISTING OF CITY OFFICIALS ELECTED OFFICIALS � Harold S. Turville, Jr. Jeff Biddle Marilyn MacLauchlin Keith Mullins Hope Lamb ! APPOINTED OFFICIALS City Manager Wayne Saunders City Attorney Robert D. Guthrie Finance Director Joseph E. Van Zile Public Services Director Preston Davis Chief of Police Randy Story Fire Chief Carle Bishop City Engineer Tamara Richardson Planning Director Barry Brown A-14 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, 1999 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. NG OfFj�� 04t4,1— Q OFF s UNITEDSTA y W AND N N y GNAOA resident CORPORAIUN Executive Director A-15 FINANCIAL SECTION This section contains the following subsections - INDEPENDENT AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS INDEPENDENT AUDITOR'S REPORT CLERMONT OFFICE Herbert John Greenlee, Jr., C.P.A. Jerry D. Brown, C.P.A. Suzanne M. Wolfe, C.P.A. / GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and City Council City of Clermont, Florida MOUNT DORA OFFICE John S. Rice, C.P.A. Patricia A. Sykes -Amos, C.P.A. C. L. (Chip) Garner, C.P.A. Dorothy A. Kurras, C.P.A. John A. Powers, C.P.A. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. We have audited the general purpose financial statements of the City of Clermont, Florida, as of and for the year ended September 30, 2000, 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 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 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, at September 30, 2000, and the results of its operations and its cash flows in its proprietary and nonexpendable trust fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and individual account group financial statements and schedules 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. In accordance with Government Auditing Standards, we have also issued our report dated February 13, 2001, 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. Clermont, Florida January_30,2001 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 8 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street B-1 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 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 more detailed statements and schedules that follow in the next subsection. CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2000 ASSETS AND OTHER DEBITS Assets: Cash and equivalents Investments Receivables: Accounts Interest Other Interfund receivables Due from other governments Prepaid items Inventory Restricted Assets: Cash and equivalents Investments Mortgage receivables Deferred charges Developer credits Land Buildings Water system Sewer system Improvements other than buildings Machinery and equipment Accumulated depreciation Other Debits: Amount available for principal in debt service fund Amount to be provided for retirement of general long-term debt TOTAL ASSETS GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECT $ 454,130 $ 322,007 $ 83,170 $ 1,061,387 855,236 1,275,801 55,957 ... ... 2,877 199 26,664 ... ... ... 11 ... ... ... 156,453 60,545 ... 2,128 ... ... 4,000 17,572 ... ... ... ... 210,006 ... ... ... 78,892 ... ... $ 1,774,501 $ 1,526,686 $ 83,170 $ 1,282.678 continued The notes to the financial statements are an integral part of this statement. B-2 FIDUCIARY PROPRIETARY FUND TYPES FUND TYPE ACCOUNT GROUPS TOTALS (.MEMORANDUM ONLY GENERAL GENERAL INTERNAL FIXED LONG-TERM ENTERPRISE SERVICE TRUST ASSETS DEBT 2000 1999 $ 627,512 $ $ 19,657 $ $ $ 1,506,476 $ 954,370 1,405,820 ... 6,061,532 ... ... 10,659,776 7,560,794 429,609 ... ... ... ... 488,443 370,621 4,149 ... ... ... ... 4,348 18,982 9,079 ... ... ... ... 35,743 27,160 ... ... 63,481 ... 63,492 50,583 ... ... ... ... ... 216,998 88,392 4,333 ... ... ... ... 10,461 5,204 33,503 ... ... ... 51,075 34,891 1,638,668 ... ... ... ... 1,638,668 1,172,229 5,774,744 ... ... ... ... 5,774,744 2,809,518 ... ... ... ... 210,006 302,983 173,792 ... ... ... ... 173,792 214,379 ... ... ... ... ... 78,892 1,464,129 ... ... 1,535,811 ... 2,999,940 2,999,940 ... ... ... 3,564,285 ... 3,564,285 2,911,970 8,628,853 ... ... ... ... 8,628,853 8,562,929 12,810,150 ... ... ... ... 12,810,150 12,300,474 541,315 ... ... 6,653,653 ... 7,194,968 6,206,103 1,677,767 ... ... 3,119,402 ... 4,797,169 4,040,820 (7,247,537) ... ... ... ... (7,247,537) (6,569,236) ... ... ... ... 70,000 70,000 66,667 3,238.540 3.238, 540 1,122.395 $ 27,975.886 $ $ 6,144,670 $ 14,873,151 $ 3,308,540 $ 56,969,282 $ 45,252,168 continued B-3 CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2000 GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL LIABILITIES, EQUITY AND OTHER CREDITS GENERAL REVENUE SERVICE PROJECTS Liabilities: Accounts payable $ 187,271 $ 28,017 $ ... $ Payroll related accruals 45,591 ... ... ... Contracts payable 194,634 Interest payable 8,509 ... ... ... Payable From Restricted Assets: Deposits Accrued interest ... ... Revenue bonds ... ... ... ... Interfund payables 45,542 ... ... ... Deferred revenue 26,664 210,006 Revenue bonds payable ... ... ... Notes payable Total Liabilities 313,577 238,023 194,634 Equity and Other Credits: Contributed capital Investment in general fixed assets ... ... ... ... Retained Earnings: Reserved Unreserved ... ... ... ... Fund Balances: Reserved for parking lots 4,638 ... ... ... Reserved for police education 29,217 ... ... ... Reserved for inventory 17,572 ... ... ... Reserved for prepaids 2,128 ... ... ... Reserved for downtown development ... ... ... Reserved for cemetery care ... ... Reserved for debt service principal ... 70,000 ... Reserved for debt service interest ... ... 13,170 ... Reserved for employees' retirement systems ... Unreserved, undesignated 1.407,369 1,288,663 1,088,044 Total Equity and Other Credits 1,460.924 1.288.663 83,170 1.088,044 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 1,774,501 $ 1,526,686 $ 83.170 $ 1,282,678 continued The notes to the financial statements are an integral part of this statement. B-4 PROPRIETARY FUND TYPES INTERNAL FIDUCIARY FUND TYPE ACCOUNT GROUPS GENERAL GENERAL FIXED LONG-TERM TRUST ASSETS DEBT TOTALS (MEMORANDUM ONLY1 2000 1999 $ 354,385 $ 37,212 $ $ $ ... $ 606,885 $ 364,198 61,343 ... ... 108,934 158,517 ... ... 194,634 56,129 ... ... ... ... ... 8,509 5,226 94,751 ... ... ... ... 94,751 89,459 180,176 ... ... ... 180,176 182,756 190,000 ... ... ... 190,000 180,000 17,939 11 ... ... ... 63,492 50,583 ... ... ... ... 236,670 329,647 10,416,817 ... ... 565,000 10,981,817 11.352,597 ... 2,743,540 21743,540 _ 424.062 11, 315.411 37,223 3,308,540 15, 407.408 13,193.174 11,083,291 ... ... ... 11,083,291 7,273,400 ... ... ... 14,873,151 ... 14,873,151 12,725,562 4,156, 509 ... ... ... 4,156, 509 3,400, 783 1,420,675 (37,223) ... ... ... 1,383,452 1,952,610 ... ... ... ... ... 4,638 4,638 ... ... ... ... 29,217 29,152 ... ... ... ... ... 17,572 8,794 ... ... ... 2,128 417 ... ... 1,667 ... 1,667 17,515 ... ... 326,050 ... ... 326,050 308,325 ... ... ... 70,000 66,667 ... ... ... 13,170 17,770 ... ... 5,816,953 ... ... 5,816,963 5,076,435 ... ... ... 3,784, 076 1 176.926 16, 660, 475 37,223: 6,144, 670 14,873,151 41, 561, 874 32,058994 $ 27, 975, 886 $ $ 6.144.670 $ 14, 873,151 $ 3. 308, 540 $ 56 969.282 $ 46,252,168 B-5 CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30, 2000 FIDUCIARY TOTALS GOVERNMENTAL FUND TYPES FUND TYPE (MEMORANDUM ONLY) EXPENDABLE SPECIAL DEBT CAPITAL TRUST GENERAL REVENUE SERVICE PROJECTS FUND 2000 19% Revenues: Taxes $ 3,312,753 $ 598,313 $ $ $ 28,163 $ 3,939,229 $ 3,183,722 Licenses and permits 188,517 188,517 149,702 Intergovernmental revenues 959,751 959,751 872,081 Charges for services 60,148 ... ... ... ... 60,148 44,336 Fines and forfeitures 174,044 174,044 108,720 Miscellaneous revenues 339,369 1,053,375 5,486 8,224 1,578 1,408.032_ 399,113 Total Revenues 5,034,582 - 1,651,688 5,486 8,224 29,741 6,729,721 4,757,674 Expenditures: Current: General government 883,788 ... ... 58,710 942,498 1,059,558 Public safety 2,455,502 ... ... 593,604 3,049,106 1,733,444 Physical environment 134,486 ... ... ... ... 134,486 137,219 Transportation 465,752 29,201 130,550 625,503 437,386 Economic environment 25,586 ... ... ... 20,000 45,586 36,111 Human services 24.914 ... ... ... ... 24,914 25,794 Culture and recreation 1,713,375 20,048 ... ... ... 1,733,423 1,347,959 Debt Service: Principal 200,000 200,000 185,000 Interest and fiscal charges 54.060 - 54 060 67,543 Total Expenditures 5.703.403 49,249 254,060 652.314 150.550 6,809,576 5.030.014 Excess (Deficiency) of Revenues Over Expenditures (668,821) 1.602.439 I248,574) (644,090) (120,809) (79,855) (272,340) Other Financing Sources (Uses): Operating transfers in 1,065,347 247,307 14,961 1,327,615 535 m Operating transfers out (14,961) (754,344) (267,866) (1,037,171) (384,499) Debt proceeds 300,000 2,000,000 90.000 2,390,000 397.000 Total Other Financing Sources (Uses) 1,350,386 (754,344) 247.307 1,732,134 104.961 2.680,444 548,337 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 681,565 848,095 (1,267) 1,088,044 (15,848) 2,600,589 275,997 Fund Balances - October 1 779,359 440.568 84.437 17.515 1 221,879_ 1,045,682 FUND BALANCES -SEPTEMBER30 $ 1,480,924 $ 1,288�683 $ 83.170 $ 1,088,044 $ 1.667 $3,922,468 $ 1,321,879 The notes to the financial statements are an integral part of this statement. B-6 CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, BUDGETED SPECIAL REVENUE, AND DEBT SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000 GENERALFUND VARIANCE FAVORABLE BUDGET ACTUAL {UNFAVORABLE) Revenues: Taxes $ 3,019,480 $ 3,312,753 293,273 Licenses and permits 132,000 188,517 56,517 Intergovernmental revenues 997,908 959,751 (38,157) Charges for services 406,991 428,139 21,148 Fines and forfeitures 163,000 174,044 11,044 Miscellaneous 259,455 339,369 79,914 Total Revenues 4,978,834 5,402,573 423.739 Expenditures: Current: General government 1,440,709 1,244,419 196,290 Public safety 2,449,797 2,455,502 (5,705) Physical environment 148,025 141,846 6,179 Transportation 499,954 465,752 34,202 Economic environment 22,835 25,586 Human services 24,355 24,914 (559) Culture and recreation 1,763,810 1,713,375 50,435 Debt service •.• .•• Total Expenditures 6,349,485 6,071,394 278,091 Excess (Deficiency) of Revenues Over (Under) Expenditures ;1,370,651 } +668.821 } 701,830 Other Financing Sources (Uses): Operating transfers in 984,125 1,065,347 81,222 Operating transfers out (15,655) (14,961) 694 Debt proceeds 617,000 300,000 (317.000) Total Other Financing Sources (Uses) 1,585,470 1,350,386 235.084) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 214,819 681,565 466,746 Fund Balances - October 1 779,359 779,359 FUND BALANCES - SEPTEMBER 30 $ 994,178 $$ 1�. $ 466,746 continued The notes to the financial statements are an integral part of this statement B-7 SPECIAL REVENUE FUNDS VARIANCE FAVORABLE BUDGET ACTUAL fUNFAVORABLEi $ 525,000 $ 598,313 $ 73,313 372,700 1,053,374 680,674 897,700 1,651,687 753,987 240,000 29,201 210,799 ... 20,048 (20,048) 62,600 62.600 302,600 49,249 253,351 595,100 1,602,438 1,007,338 (551,047) (754,344) (203,297) (551,04T 1754,344, i203,297) 44,053 848,094 804,041 440,315 440,315 $ 484,368 $$ 1.28 409409 $ 804,041 DEBT SERVICE FUND VARIANCE FAVORABLE BUDGET ACTUAL i UNFAVORABLE; $ ... $ ... $ 4,000 5,486 1,486 4,000 5,486 1,486 254,060 254,060 254,060 254,060 (250.060) +248,574; 1,486 250,060 247,307 (2,753) 250,060 247,307 f2,7531 (1,267) (1,267) 84,437 84,437 $ 84®437 $$ 83,170 $ 1,267) M; CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000 PROPRIETARY FUND TYPES INTERNAL Operating Revenues: Charges for services $ 4,478,897 Sale - cemetery lots ... Sale of recycled materials 10,327 Reimbursements _ 31,158 Total Operating Revenues 4.520.382 Operating Expenses: Personal services 1,178,436 Utilities 367,586 Dumping fees 299,285 Administrative services 368,031 Repair and maintenance 220,754 Depreciation 678,301 Professional services 318,900 Insurance 56,830 Operating supplies 252,660 Office expense 53,076 Bad debt 5,550 Trustes/administrative fees ... Medical claims Total Operating Expenses 3,799,409 Operating Income (Loss) 720,973 Nonoperating Revenues (Expenses): Interest revenue 396,802 Interest expense (587,297) Grants 3,447 Change in fair value 24,242 Total Nonoperating Revenues (Expenses) {162,8081 Income (Loss) Before Operating Transfers 558,167 Operating transfers (out) (290,4441 Net Income (Loss) 267,723 Retained Eamings/Fund Balances - October 1 5.309.461 RETAINED EARNINGS/FUND BALANCES - SEPTEMBER 30 $ 5.577,184 The notes to the financial statements are an integral part of this statement $ 451,120 16.449 467.569 FIDUCIARY FUND TYPE NONEXPENDABLE TRUST 2000 $ $ 4,930,017 17,725 17,725 ... 10,327 47,607 17 725 5.005,676 TO (MEMORANDUMS ONLY) ... ... 1,178,436 ... ... 367,586 ... ... 299.285 ... ... 368,031 ... ... 220,754 ... ... 678,301 ... ... 318,900 59,330 ... 116,160 ... ... 252,660 ... ... 53,076 ... 5,550 23,587 ... 23,587 467.034 487,034 549.951 4,349,360 (82,382) 17,725 656.316 1,227 ... 398,029 ... ... (587,297) ... ... 3,447 24,242 1,227 ... (161,579) (81,155) 17,725 494,737 (290,444) (81,155) 17,725 204,293 43,932 308,325 5,661,718 $ (37,223) $ 326,050 $ 5,866,011 1999 $ 4,040,958 24,625 7,179 50.869 4,123,631 1,061,074 343,481 309,003 226,632 292,312 645,887 187,848 37,971 112,511 44,187 9,102 70,679 386,894 3,727,581 10000U-::NZA 183,443 (611,491) 3,141 4,257 (420,650) (24,6DO) (151,337% (175,937) 5,837.655 $. B-9 CITY OF CLERMONT, FLORIDA PENSION TRUST FUND COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2000 AND 1999 (Memorandum Only) 2000 1999 Additions Contributions: Employer $ 159,671 $ 134,167 Plan members 10,329 8,041 State 15,998 121,083 Total contributions 185,998 263,291 Investment Income: Net investment income including appreciation in fair value 782,002 561,994 Less: Investment expense 22,873 21,887 Net investment income 759,129 540,107 Total additions 945,127 803,398 Deductions Benefits 204,609 217,119 Total deductions 204,609 217,119 Net increase 740,518 586,279 Net assets held in trust for pension benefits Beginning of year 5,076,435 4,490,156 End of Year $ 5,816,953 $ 5,076,435 The notes to the financial statements are an integral part of this statement. B-10 CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Cash Flows From Operating Activities: Cash received from customers Cash payments to suppliers Cash payments for employee services Cash payments for medical claims Net Cash Provided (Used) By Operating Activities Cash Flows From NonCapital Financing Activities: Operating transfers out Grants Net Cash Provided (Used) By NonCapital Financing Activities Cash Flows From Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid Interest paid Contributed capital Sales of assets Net Cash Provided (Used) By Capital and Related Financing Activities Cash Flows From Investing Activities: Interest Investment sales Investment purchases Net Cash Provided (Used) By Investing Activities Net Increase (Decrease) In Cash and Equivalents Cash At Beginning Of Year Cash At End Of Year FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUM ONLY) INTERNAL NONEXPENDABLE ENTERPRISE SERVICE TRUST 2000 im $ 4,426,234 $ 467,569 $ 17,725 $ 4,911,528 $ 4,094,415 (1,771,833) (82,917) ... (1,854,750) (1,632,531) (1,187,648) ... ... (1,187,648) (1,042,294) 0,1801 (450160.' {398,8691 1,466.753 (65,508) 17,725 1,418,970 1020,721 (290,444) ... ... (290,444) (151,337) 6.588 6.588 2.802 (283,856) _ (283,856) T (148535) (825,540) ... ... (825,540) (773,234) (180,000) ... ... (180,0DD) (175,000) (530,069) ... (530,D69) (553,085) 3,809,891 ... ... 3,809,891 1,697,806 The notes to the financial statements are an integral part of this statement. 2.274,282 396,239 1,227 5,468 64,281 (3,310,104) (2.908,397) 65-508 548,782 ... 1,717.398 $2.266,180 $ 2.274,282 ... 397,466 ... 69,749 18.213s (3,328,317) ;18,213j 12,861.102! (488) 548,294 18.478 1,735,876 $ 17,990 $ 2,284,170 KIM 226.612 180,353 53,534 (835,735; r401,848) 696,950 1,038,926 $ 1.735.876 (continued) B-11 FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUM ONLY) INTERNAL NONEXPENDABLE ENTERPRISE SERVICE TRUST 2000 1999 Reooncilation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ 720,973 $ (82,382) $ 17,725 $ 6%316 $ 396,050 Ajuslments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation 678,301 ... ... 678,301 645,887 Change in Assets and Liabilities: Decrease (Increase) in receivables (99,441) ... ... (99,441) (32,449) Decrease (Increase) in prepaids 454 ... ... 454 2,316 Decrease (Increase) in inventory (7,407) ... ... (7,407) 1,809 Increase (decrease) in deposits 5.293 ... 5,293 3,233 Increase (Decrease) in accrued expenses (9,212) ... ... (9,212) 17,644 Increase (Decrease) in payables 177.792 16,874 194.666 L13,7691 Total Adjustments 745.780 16.874 762 654 624,671 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,466,753 $ (65,506) $ 17,725 $ 1,418.970 $ 1,020,721 B-12 mYi �. I � ti- CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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 financial statements of the City of Clermont, Florida have been prepared in conformity with generally accepted accounting principles as applicable to governments. The following is a summary of the City's more significant accounting policies: A. Description of the Reporting Entity - Generally accepted accounting principles 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 following is a brief review of the potential component unit addressed in defining the City's reporting entity. Blended Component Unit: 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 III, Florida Statutes. The incremental annual increase in tax over the base year 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. B-13 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS B. Fund Accounting - The accounts of the City are organized on the basis of funds and 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: Governmental Funds - 1. General Fund - To account for all financial resources except those required to be accounted for in another fund. 2. Special Revenue Funds -To account for the proceeds of specific revenue sources (other than special assessments, expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes. 3. Debt Service Fund - To account for the accumulation of resources for, and the payment of, general long term debt principal, interest and related cost. 4. Capital Projects - To account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Proprietary Funds - 1. Enterprise Funds - 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 had 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. 2. Internal Service Fund - To account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost -reimbursement basis. B-14 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Fiduciary Funds - Trust Funds - To account for assets held by the City in a trustee capacity. Non - expendable and pension trust funds are accounted for in essentially the same manner as Proprietary Funds, since capital maintenance is critical. The expendable trust fund measurement focus is the same as Governmental Funds. Account Groups - General Fixed Asset Account Group - is used to maintain control and cost information for all fixed assets other than those accounted for in the Proprietary and Nonexpendable Trust Funds. 2. General Long -Term Debt Account Group - is used to record the outstanding long-term obligations not otherwise recorded in Proprietary, Nonexpendable Trust and Pension Trust Funds. C. 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 FASB 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 M CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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. 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. Encumbrance accounting is not used by the City. D. Budgets The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Prior to August 31, the City Manager submits to the City Council the proposed operating budget for the fiscal year commencing the following October 2. 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 1, the budget is legally enacted through passage of an ordinance. The legal level of budgetary control is the department level. Administrative control is maintained at the object level through integration with the accounting records. Appropriations lapse at the end of each fiscal year. In the general fund, the following departments had an excess of expenditures over appropriations: legislative ($1,654), executive ($2,790), finance ($20,033), law enforcement ($42,243), economic development ($2,751) and animal control ($559). Budgets are prepared on a basis consistent with accounting principles generally accepted in the United States of America (GAAP) for the infrastructure fund and the nonexpendable trust fund. The general fund's non-GAAP basis budget includes reimbursements from other funds as revenues rather than as reductions of LIM CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS expenditures. The enterprise funds' budgets are prepared on a non-GAAP basis as depreciation in the utility fund is not budgeted while debt principal payments and capital additions are budgeted as expenses in all enterprise funds. 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. Budget amounts are reported as originally adopted or revised. A schedule summarizing budget revisions by fund is presented in notes to the financial statements No. 2. Budgets are not adopted for the block grant, expendable trust fund, internal service and trust funds. Budget amounts for the general, infrastructure, impact fee and debt service funds are reported in the combined financial statements. A comparison of budgeted and actual (budgetary basis) expenses in the enterprise funds is shown in notes to financial statements No. 2. E. . Assets, Liabilities and Fund Equity 1. Cash, Cash Equivalents, and Investments - 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. 2. Accounts Receivable From Other Governments - Those amounts that represent a claim against another government, and are measurable, have been accrued. 3. Receivables - All the Utility Funds maintain the direct write-off method of bad debt recognition due to the immateriality of the amounts. The City has no concentrations of credit risk. 4. Inventories - Inventories are priced at cost using the first -in, first -out method. Inventories are maintained by the General Fund and the Utility Fund. The City uses the consumption method in expensing governmental fund inventories. 5. 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. B-17 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 6. 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 an estimated historical cost where no historical records 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, streets 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. 7. Compensated Absences - No accrual is made for accrued vacation leave in the governmental funds because of immateriality. Accumulated vacation leave of employees in the proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No accrual is made for sick leave benefits which accumulate but do not vest until retirement. 8. 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 B-18 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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. 9. Risk Management - The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; 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 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. 10. Fund Equity - Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. F. Revenues, Expenditures and Expenses Interest income resulting from pooling of cash in master bank accounts is allocated to the funds in their proportionate share. 2. Unbilled revenue, which results from cyclical billing practices, is recorded in the following fiscal year. 3. Interfund Transactions - Legally authorized transfers from the fund receiving revenue to the fund through which the resources are to be expended, transfers of tax revenues from a special revenue fund to a debt service fund, transfers from the general fund to a special revenue or capital projects fund, operating subsidy transfers from the general or a special revenue fund to an enterprise fund, and transfers from an enterprise fund other than payments in lieu of taxes to finance general fund expenditures. CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 4. Bond Discounts and Issuance Costs - Bond discounts and issuance costs are deferred and amortized over the term of the bonds using the effective rate and straight-line methods, respectively. Bond discounts are presented as a reduction of the face amount of the revenue bonds payable and issuance costs as other assets. 5. 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 validated 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 10 mills Utility tax (Electric, gas, telephone) 10% Utility tax (Telecommunications) 7% G. 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 generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 1 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 2. Stewardship, Compliance and Accountability: A. Budget Revisions The following schedule summarizes budget revisions by Fund: Original Final Budget Revisions Budget General Fund $5,797,528 $ 551,957 $6,349,485 B. General Fund Budget/GAAP Reconciliation: Excess of revenues and other sources over expenditures and other uses (budgetary basis) $ 681,565 Adjustments: To reduce revenues for administrative service fees (367,991) To reduce expenditures for administrative service fees 367,991 Excess of revenues and other sources over expenditures and other uses (GAAP basis) 681.565 C. Special Revenue Funds Budget/GAAP Reconciliation: Excess of revenues and other financing sources over expenditures and other financing uses (budgetary basis) $ 848,094 Adjustments: To record excess of revenues and other financing sources over expenditures and other financing uses for unbudgeted Block Grant Fund. 1 Excess of revenues and other financing sources over expenditures and other financing uses (GAAP basis) 8095 B-21 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS D. Enterprise Funds Budget Comparisons Comparison of budgeted and actual (budget basis) expenses at the legal level of control for the Enterprise Funds is presented as follows: Water Sewer Sanitation Stormwater Fund Fund Fund Fund Actual Expenses (GAAP Basis) $ 1,611,486 $1,680,917 $ 961,246 $133,057 Less: Unbudgeted depreciation (258,025) (324,143) (53,858) (18,275) Add: Capital additions 132,017 472,470 41,687 106,846 Principal payments 52,200 127,800 ... Actual (Budget Basis) 1,537,678 1,957,044 949,075 221,628 Budget 3.900.151 9,507,762 8 22.505 156,392 Variance -favorable (unfavorable) JZjL0 718 (86,570 (65,236) E. Deficit Fund Equity The Group Self Insurance Fund had a deficit retained earnings of ($37,223). The City is increasing the premium in order to provide operating income for future years. 3. Deposits and Investments: 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. B-22 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS INVESTMENTS State statutes authorizes investment in: a. The Local Government Surplus Funds Trust Fund, (commonly referred to as the SBA) administered by the Florida State Board of Administration or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01. b. Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency. c. Interest -bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02. d. Direct obligations of the U.S. Treasury. The State Board of Administration (Board) was established on June 21, 1928, pursuant to Chapter 14486, 1929, Laws of Florida. The Board was subsequently created as a constitutional body corporate on January 1, 1943, under the provisions of Senate Joint Resolution No. 324, 1941; approved by the electorate in November 1942. The Board is composed of the Governor, as Chairman, the State Treasurer, as Treasurer, and the State Comptroller, as Secretary, and provides the following services by law: (1) investment of funds of the Florida Retirement System (FRS); (2) administration of debt service funds; (3) investment of trust and agency funds; and (4) distribution of the "Second Gas Tax." The SBA is governed by Ch. 19-7 of the Florida Administrative Code, which identifies the Rules of the State Board of Administration. These rules provide guidance and establish the general operating procedures for the administration of the SBA. Additionally, the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. 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 City's investments are categorized below to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered, or securities held by the City or its agent in the City's name. Category 2 includes B-23 CI 5. CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS uninsured and unregistered investments held by the counterparty's agent in the City's name. Category 3 includes uninsured and unregistered investments held by a counterparty but not in the City's name. Carrying Fair Value Value RISK CATEGORY 3: Repurchase Agreement $ 2,824,000 $ 2,824,000 (Securities held by bank in bank's name) USTN notes (held by broker) 2,558,924 2,559,357 Investment in local government surplus funds trust 8,122,124 8,122,124 Florida Municipal Pension Trust Fund 5,753,472 _ 5,753.472 Total $19,258,520 $19.258 553 Community Development Block Grant Fund Mortgages Receivable: 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 mortgage receivable will be reduced along with a corresponding amount of deferred revenue. During the year ended September 30, 2000, $92,977 of the original mortgage amounts was forgiven. Changes In General Fixed Assets: A summary of changes in general fixed assets is as follows: Land Buildings Improvements other than buildings Balance - 9/30/99 Additions $ 1,535,811 $ 2,911,970 652,315 5,751,296 902,357 Balance - Deletions 9/30/00 $ $ 1,535,811 ... 3,564,285 ... 6,653,653 Machinery and equipment 2.5� 682,140 89.223 3.119A02 Totals $112 725,562 $2236.812 89,223 $14.873,151 B-24 21 7 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Changes in Proprietary Fund Fixed Assets: Balance - Balance - 9/30/99 Additions Deletions 9/30/00 Land $ 1,464,129 $ ... $ ... $ 1,464,129 Water system 8,562,929 65,924 ... 8,628,853 Sewer system 12,300,474 509,676 ... 12,810,150 Improvements other than buildings 454,807 86,508 541,315 Equipment 1,514,335 163,432 1.677 767 Total Assets 24,296,674 825,540 25,122,214 Less: Accumulated depreciation 6,569,236 678.301 7,247,537 Net M7,727.438 147,239 $ J17.874.677 Pension Funds: The City has three separate single employer defined benefit 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 these plans is the Florida Municipal Pension Trust Fund, an agent multiple -employer Public Employee Retirement System. Costs of administering the plans are paid from investment income. The plans issue neither a stand-alone financial report nor are included in the report of a public employee retirement system. DEFINED BENEFIT PENSION PLANS Membership in each of the defined benefit pension plans at September 30, 2000, was as follows: Retirees/beneficiaries currently receiving benefits Vested terminated employees Active employees: Fully vested Nonvested General Police Employees Officers Firefighters 15 3 2 0 0 2 0 4 3 0 22 14 B-25 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Eli ig'bility for Participation General employees - all permanent general employees actively employed by the City on September 30, 1985, who elected to participate. All participants have now retired. Police officers Firefighters VESTING Full Partial - all actively employed sworn police officers. - all actively employed firefighters. GENERAL EMPLOYEES Age 65; 10 years service Age 60; 10 years service Monthly 2% of highest 5 year Benefits average salary times years of creditable service POLICE OFFICERS FIREFIGHTERS Age 55; 10 years Age 55; 10 years service service vesting as 10/1/90, age 60 Age 50; 10 years Age 50; 10 years service service 2.25% of average $5.00 per month times monthly earnings years of creditable times years of service for part-time. creditable service Full time: 2% of average monthly salary times service years. For all plans the partially vested monthly benefit shall be the fully vested amount reduced by 5/ 12th of 1 % of said amount for each month that early retirement precedes the normal retirement date. Each defined benefit plan provides disability benefits. Benefit provision and all other requirements are established by Florida Statute and City Ordinance. If an employee terminates his or her employment with the Police or Fire Departments, the employee is entitled to a refund of his or her contribution. IM CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Police officers and firefighters contribute 1 % of their annual salary to their respective plans. The General Employee plan is non-contributory. The City is required to contribute the remaining amount necessary to fund the Plans according to the actuarial valuations. All three plans use the aggregate actuarial cost method which does not identify or separately amortize unfunded actuarial liabilities. FUNDING POLICY GENERAL POLICE EMPLOYEES OFFICERS FIREFIGHTERS Contribution rates: City 44.8% 10.2% 3.8% Plan members 0% 1 % 1 % Annual pension cost $ 16,701 $ 91,861 $ 10,202 Contributions made 6,818 25,368 18,124 Actuarial surplus applied 11,593 69,878 ... Actuarial valuation date 10/01/99 10/01/99 10/01/99 Aggregate cost Aggregate cost Aggregate cost Actuarial cost method N/A N/A N/A Amortization method N/A N/A N/A Remaining amortization period Asset valuation method 5 year 5 year 5 year smoothed smoothed smoothed market market market Actuarial assumptions: Investment rate of return 7.5% 7.5% 7.5% Projected salary increases 6.0% 5.5% 5.5% Includes inflation at 3.5% 3.5% 5.5% Cost of living adjustments N/A N/A 3.5% B-27 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Three Year Trend Information Annual Percentage Net Year Pension of APC Pension Ending Cost (APQ Contributed Obligation General Employees 9/30/00 $ 16,701 110 0 9/30/99 13,438 100 0 9/30/98 13,500 170 0 Police Officers 9/30/00 $ 91,861 95 0 9/30/99 89,564 125 0 9/30/98 68,311 161 0 Firefighters 9/30/00 $ 10,202 177 0 9/30/99 11,135 374 0 9/30/98 9,395 485 0 SCHEDULE OF CONTRIBUTIONS ANNUAL CITY STATE REQUIRED CONTRIBUTION CONTRIBUTION CONTRIBUTI N PERCENTAGE PERCENTAGE General Employees 1992-93 $ 5,543 147.6% 0.0% 1993-94 13,348 100.00/0 0.0% 1994-95 17,120 100.0% 0.0% 1995-96 20,738 100.00/0 0.0% 1996-97 13,500 100.0% 0.0% 1997-98 13,500 170.7% 0.0% 1998-99 13,438 100.00/0 0.0% 1999-00 16,701 40.8% 0.0% Police Officers 1992-93 $65,540 40.4% 57.4% 1993-94 72,517 39.4% 54.6% 1994-95 74,514 33.9% 64.3% 1995-96 73,945 32.6% 68.9% 1996-97 78,058 26.7% 71.8% 1997-98 68,311 48.2% 104.1% 1998-99 82,558 30.1% 97.5% 1999-00 91,861 18.7% 0.00/0 For the year ending September 30, 2000 the General Employees and Police pension funds applied their surplus contribution account balances to current year required contributions. B-28 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS ANNUAL CITY REQUIRED CONTRIBUTION CONTRIBUTION ION PERCENTAGE STATE CONTRIBUTION PERCENTAGE Firefighters 1992-93 $ 180 0.0% 5627.2% 1993-94 184 0.00/0 9122.8% 1994-95 6,273 0.0% 235.6% 1995-96 7,774 0.0% 232.6% 1996-97 8,444 0.0% 254.6% 1997-98 9,395 0.0% 480.3% 1998-99 10,100 0.0% 402.1% 1999-00 10,202 0.0% 156.6% The City's annual pension cost and net pension obligation to the Firefighters pension fund for the current year were as follows: Annual required contribution $ 10,202 Interest on net pension obligation 2,440 Adjustment to annual required contribution (2.440) Annual pension cost 10,202 Contributions made 18,124 Decrease in net pension obligation (7,922) Net pension obligation beginning of year (32,538) Net pension obligation end of year 40 460) 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. This Plan is available to all permanent general employees of the City. Employees are fully vested in the Plan after ten years of service. The following is the partial vesting schedule: YEARS OF SERVICE Less than five years 5 years 6 years 7 years 8 years 9 years 10 years VESTED INTEREST 0% 50% 60% 70% 80% 90% 100% lim CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Membership in the defined contribution pension plan at September 30, 2000, was as follows: General Employees Retirees and beneficiaries currently receiving benefits 0 Vested terminated employees 2 Active employees: Fully vested 17 Partially vested 8 Nonvested 50 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 2000 was $2,168,499; the City's total payroll was.$3,393,596. 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 of employees. The required contribution by the City for fiscal year 2000 was $173,480 or eight percent (8%) of covered payroll, less forfeitures of $37,792. Actual contribution was $135,688. 8. 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. 9. Risk Management: During fiscal year 1990, the City established an internal service fund to account for its uninsured risk of loss for employee medical and dental coverage. Under this program, the fund provides coverage for the first $40,000 per year in medical, dental, or prescription claims for each covered employee. The City purchases commercial insurance for claims in excess of coverage provided by the fund with a total aggregate stop -loss of $1,000,000. I:15d1 10 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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. 2000 1999 1998 Claims liabilities, beginning of year $ 20,349 $ 32,324 $ 9,567 Incurred claims 467,034 386,894 286,767 Payments on claims (450,171 (39809) 26(� 4�010) Claims liabilities, end of year 37 212 20.349 $ 32.324 Unpaid claims are based on reported claims up to sixty days after year end and personal knowledge of any employees' major health crisis. Commitments: The following construction projects were not completed at September 30, 2000. TOTAL COST ESTIMATED INCURRED FINANCING COST TO DATE SOURCE City Hall - Design $300,000 $ 58,710 Debt Fire Station #1 - Construction 877,659 570,113 Debt Hancock Park - Construction 591,785 506,968 State grant/impact fees Waterfront Park - Construction 185,000 173,147 State grant/impact fees Wastewater treatment - Engineering 497,500 209,737 Impact fees B-31 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 11. General Long -Term Debt: The following is a summary of changes in notes payable and bonds outstanding for the year ended September 30, 2000: Line of Notes Mortgages Bonds Credit Pavable Payable Total Bonds and Notes Payable At October 1, 1999 $ 765,000 $ $ 397,000 $ 27,062 $1,189,062 New debt 2,000,000 300,000 90,000 2,390,000 Retirements 1200.000i JkLl06 t4.416. (270,522 Bonds and Notes Payable At September 30, 2000 565.000 _2 000,000 6� 30,894 $ 112 646 S 3,308.540 B-32 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Bonds and notes payable at September 30, 2000, are comprised of the following individual issues: $2,070,000 Sales Tax Revenue Bond, Series 1989 due serially in annual installments of $110,000 to $225,000 starting June 1, 1991 through June 1, 2003; interest rates vary from 6.3% to 7.05% Line of credit to Florida Local Government Finance Commission issued August 31, 2000. Matures December 2, 2003. Interest only payments made monthly. Interest is based on a percentage of the federal T-bill rate. (Averaging 4.3%) 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 1, 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 firetruck. Capital Improvement Notes, Series 1999 due to SunTrust Bank in ten annual installments of $40,264 (including interest) starting December 1, 2000. The notes bear an interest rate of 5.742%. The loan was obtained to purchase a firetruck. Note payable, dated August 1, 2000, due in five annual installments of $18,000 starting August 1, 2001; plus interest at 10% per annum. The downtown development district parking lot land was purchased with the proceeds. 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 1/2% per annum, secured by the gasoline tax revenues of the City. Total General Long Term Debt $ 565,000 2,000,000 330,894 300,000 21646 5 3.308.540 B-33 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS The annual requirements to amortize all general long-term debt outstanding as of September 30, 2000, including interest payments of $511,194, are as follows: Year Ending September 30 2001 2002 2003 2004 2005 2006-2010 Total Bonds $249,510 $249,915 $ 139,165 $ ... $ ... $ ... $638,590 Line of Credit 86,000 86,000 86,000 2,014,333 ... ... 2,272,333 Note Payable 79,490 79,437 79,383 79,326 22,559 22,543 362,738 Note Payable 40,264 40,264 40,264 40,264 40,264 201,320 402,640 Note Payable 27,000 25,200 23,400 21,600 19,800 ... 117,000 Note Payable 5,661 5,418 5,175 4,935 5,244 26,433 Total 487 925 486 234 373 387 160 458 87 867 223 863 3� 81r 9 ?34 12. Advance Refunding: On July 1, 1993, the City received a $3,905,000 loan from the City of Arcadia Dedicated Pool Local Government Revenue Bonds, Series 1993, with an interest rate of 5.48 percent to advance refund $1,055,000 of outstanding 1972 Series bonds with an interest rate of 6 percent and $2,080,000 of 1988 refunding bonds with interest rates ranging from 5.25 to 8 percent. The net proceeds of $3,480,987 (after payment of $424,013 in underwriting fees, insurance, issuance costs, and reserve allocation) were disbursed through an escrow deposit agreement and invested in defeasance obligations which will produce sufficient maturing principal and interest to timely pay the principal and interest of the outstanding obligations. As a result, both the 1972 and 1988 issues are considered to be defeased and the liability for these bonds has been removed from the City's financial statements. At September 30, 2000, $2,150,000 of bonds outstanding are considered defeased. 13. Enterprise Fund Long -Term Debt: The following is a summary of changes in issues outstanding for the year ended September 30, 2000: 1993 Issue Bonds and notes payable - October 1, 1999 $10,96000 Retirements (180,000) Bonds and notes payable - September 30, 2000 10 780 000 B-34 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS The debt is comprised of the following items: $3,905,000 1993 refunding bond issue due serially in annual installments of $125,000 to $515,000 starting December 1,1993, through December 1, 2015; interest of 5.48% is paid semiannually. The net revenues of the water and sewer funds are pledged to secure the repayment of the debt. $7,990,000 water and sewer revenue and refunding bond anticipation notes bearing interest of 5%. Interest only payments due semi-annually with a balloon principal payment due December, 2000. This debt will be paid from proceeds of Water and Sewer Revenue and Refunding Bonds, Series 2000. $ 2,790,000 7 990,000 S 10,780.000 The annual requirements to amortize the debt outstanding as of September 30, 2000, including interest payments of $1,722,526, are as follows. YEAR ENDING SEPTEMBER 30 TOTAL 2001 $ 8,516,600 2002 323,282 2003 324,078 2004 216,740 2005 216,740 2006 - 2010 1,080,728 2011- 2015 1,078,945 2016 745.413 $ 12,502,526 B-35 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 14. Interfund Receivables and Payables: Individual fund interfund receivable and payable balances at September 30, 2000, are as follows: Interfund Interfund Receivables Payables General Fund $ 11 $ 45,542 Group Self Insurance Fund ... 11 Sewer Fund 6,665 Water Fund ... 7,008 Sanitation Fund 3,275 Stormwater Fund ... 991 Police Pension Trust Fund 17,165 ... General Employee Defined Contribution Pension Fund 46,316 Totals 4. 63,492 L§L492 IM 15 CITY OF CLERMONT, FLORIDA NOTES TO TBE FINANCIAL STATEMENTS Reserved Fund Balances and Retained Earnings: Fund Balance - Reserves have been established for the following items: Reserved for Parking Lots - Funds collected specifically for off street parking. Reserved for Police Education - Funds reserved by state statute for training of police officers. Reserved for Inventory - Funds expended for goods that will be used in the following year. Reserved for Prepaids - Funds expended for service that will be used in the following year. Reserved for Downtown Redevelopment - Funds restricted for infrastructure improvements in a geographic area defined by ordinance. Reserved for Debt Service - Funds restricted for payment of general long term debt principal. Reserved for Debt Service - Funds restricted for payment of interest on general long term debt. Reserved for Cemetery Care - Funds reserved by City ordinance for future care of the cemetery. Reserved for Employees' Retirement Systems - Funds restricted for payment of retirement benefits. Total Reserved Fund Balances $ 4,638 29,217 17,572 2,128 1,667 70,000 13,170 326,050 5M6M3 6 281 395 Retained Earnings - Reserves have been established in accordance with both the covenants of the City's bond indentures for the following items in the Enterprises Funds: Reserved for Debt Service - Fund restricted for future servicing $ 245,521 of the revenue bonds. Reserved for Expansion - Utility Benefits Fees and loan proceeds restricted for utility expansion. 3,910,988 B-37 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 16. Changes in Contributed Capital: Balance October 1, 1999 $ 7,273,400 Contributions from developers 3,809-891 Balance September 30, 2000 $11.083.291 17. Segment Information: The City maintains four Enterprise Funds which provide water, sewer, sanitation, and stormwater services. Segment information for the year ended September 30, 2000, is as follows: FUNDS Totals Water Sewer Sanitation Stormwater Operating Revenues $ 2,124,341 $ 1,323,239 $ 889,531 $183,271 $ 4,520,382 Depreciation 258,025 324,143 77,858 18,275 678,301 Operating Income (Loss) 756,833 (14,359) (71,715) 50,214 720,973 Operating Grants ... ... Operating transfer out (208,259) (77,785) (2,978) (1,422) (290,444) Operating transfer in ... ... Net Income (Loss) 480,240 (202,076) (66,202) 55,761 267,723 Current Capital - Contributions 910,720 2,899,171 ... 3,809,891 Plant, Property and Equipment: Additions 121,115 576,230 41,687 86,508 825,540 Net Working Capital 1,417,209 427,105 112,775 123,249 2,080,338 Total Assets 10,295,230 16,601,849 362,659 716,148 27,975,886 Bonds and Other Long -Tenn Liabilities: Payable From Operating Revenues 4,501,589 6,088,411 ... 10,590,000 Total Equity 5,541,289 10,102,736 325,305 691,145 16,660,475 18. Contingencies: The City is not aware of any pending or threatened litigation which would not be covered by insurance. 19. Subsequent Events: In November, 2000, the City issued its Water and Sewer Revenue and Refunding Bonds, Series 2000 in the amount of $17,935,000 for the purpose of funding a portion of the City's sewer treatment plant expansion and various other water and sewer capital improvements and refinancing the City's outstanding Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996. B-38 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS 20. Awards: The City received several state and local grants. Program Total Grantor/ Program Assistance Disbursements/ Program Title LD. Number Received Expenditures Florida Department of Community Affairs: Community Planning 99-DR-1 G-06-45-02-015 $ 6,000 $ 6,000 Police Department C.P.D. Laptop Reporting 00-CJ-G3-06-45-02-036 $ 7.508 $ 7,508 Florida Department of Environmental Protection: Hancock Park Project F20178 $ 100,000 $ 100,000 (receivable at 9/30/00) Lake County: Recycling and Education Grant RE00-33 $ 3,347 $ 3,347 Youth Recreation Grant N/A $ 13,570 $ 13,570 Capital Recreation N/A $ 10,000 $ 10,000 Hancock Park N/A $ 150,000 $ 150,000 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 fund and account group statements are presented when there is only one fund of a given type and for the account group. They are also necessary to present budgetary comparisons. GOVERNMENTAL FUND TYPES GENERALFUND 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 GENERALFUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2000 AND 1999 TOTALS ASSETS 2000 1999 Cash and equivalents Investments Receivables: Accounts Assessments Interfund receivables Interest Due from other governments Prepaid expenditures Inventory TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Interest payable Contracts payable Payroll related accruals Interfund payables Deferred revenue Total Liabilities Fund Balance: Reserved for parking lots Reserved for police education Reserved for inventory Reserved for prepaids Unreserved, undesignated Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE $ 454,130 $ 119,193 1,061,387 908,353 55,957 42,179 26,664 26,664 11 199 5,087 156,453 44,539 2,128 417 17,572 8,794 $ 1,774,501 $ 1,155,226 $ 187,271 $ 187,579 8,509 5,226 35,791 45,591 83,404 45,542 37,203 26,664 26,664 313,577 375,867 4,638 4,638 29,217 29,152 17,572 8,794 2,128 417 1,407,369 736,358 1,460,924 779,359 $ 1,774,501 $ 1,155,226 B-40 CITY OF CLERMONT, FLORIDA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 VARIANCE FAVORABLE 1999 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues: Taxes $ 3,019,480 $ 3,312,753 $ 293,273 $ 2,623,966 Licenses and permits 132,000 188,517 56,517 149,702 Intergovernmental revenues 997,908 959,751 (38,157) 838,118 Charges for services 406,991 428,139 21,148 270,968 Fines and forfeitures 163,000 174,044 11,044 108,720 Miscellaneous 259,455 339,369 79,914 135,550 Total Revenues 4,978,834 5,402,573 423,739 4,127,024 Expenditures: Current: General government 1,440,709 1,244,419 196,290 1,242,963 Public safety 2,449,797 2,455,502 (5,705) 1,733,444 Physical environment 148,025 141,846 6,179 141,752 Transportation 499,954 465,752 34,202 419,830 Economic environment 22,835 25,586 (2,751) 7,547 Human services 24,355 24,914 (559) 25,794 Culture and recreation 1,763,810 1,713,375 50,435 1,214,759 Total Expenditures 6,349,485 6,071,394 278,091 4,786,089 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,370,651) (668,821) 701,830 (659,065) Other Financing Sources (Uses): Operating transfers in 984,125 1,065,347 81,222 283,337 Operating transfers out (15,655) (14,961) 694 (4,419) Debt proceeds 617,000 300,000 (317,000) 397,000 Total Other Financing Sources (Uses) 1,585,470 1,350,386 235,084 675,918 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and and Other Financing Sources (Uses) 214,819 681,565 466,746 16,853 Fund Balance - October 1 779,359 779,359 762,506 FUND BALANCE - SEPTEMBER 30 $ 994,178 $ 1,460,924 $ 466,746 $ 779,359 B-41 CITY OF CLERMONT, FLORIDA GENERALFUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 VARIANCE FAVORABLE 1999 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues: Taxes: Ad valorem $ 1,181,680 $ 1,205,271 $ 23,591 $ 837,908 Local option gas tax 196,000 205,885 9,885 198,877 Franchise fees 590,000 653,631 63,631 560,156 Utility taxes 1, 051,800 1,247,966 196,166 1,027,025 Total Taxes 3.019.480 3,312.753 293,273 2,623,966 Licenses and Permits: Professional and occupational 42,000 71,309 29,309 38,660 Other permits 90.000 117,208 27,208 111.042 Total Licenses and Permits 132,000 188,517 56,517 149,702 Intergovernmental Revenues: Two -cent cigarette tax 32,500 28,012 (4,488) 31,381 State revenue sharing 146,700 168,977 22,277 150,636 Mobile home licenses 9,200 10,150 950 8,412 Alcoholic beverage licenses 5,000 9,639 4,639 5,342 Half --cent sales tax 356,300 380,646 24,346 335,509 Motor fuel tax rebate 5,000 8,718 3,718 6,333 Municipality share of county occupational licenses 9,700 10,630 930 9,701 Municipality share of one -cent voted gas tax 59,000 55,901 (3,099) 60,934 Grants 374,508 287.078 (87,430) 229,870 Total Intergovernmental Revenues 997,908 959.751 (38.157) 838,118 Charges For Services: Public safety 2,000 965 (1,035) 1,840 Program activity fees 37,000 59,183 22,183 42,496 Administrative service fee 367,991 367,991 226.632 Total Charges For Services 406,991 428.139 21,148 270,968 Fines and Forfeitures: Court fines 125,000 124,650 (350) 85,252 Police education 6,500 7,060 560 3,794 False alarms 2,000 6,010 4,010 ... Confiscations 3,000 3,986 986 1,068 Automation 26,500 32,338 5.838 18,606 Total Fines and Forfeitures 163,000 174,044 11,044 108,720 Miscellaneous Revenues: Interest and change in value 54,500 78,196 23,696 64,468 Rentals 32,000 43,968 11,968 22,256 Memorial sales ... 510 510 20 Surplus equipment 4,500 12,862 8,362 ... Contributions 143,200 163,687 20,487 2,069 Reimbursements 10,255 26,644 16,389 34,330 Other miscellaneous 15,000 13,502 {1,498) T 12,407 Total Miscellaneous Revenues 259,455 339.369 79,914 135.550 TOTAL REVENUES $$ 4,978,834 $ 5.402,573 $ 423,739 $$ 4,127,024 B-42 CITY OF CLERMONT, FLORIDA GENERALFUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 VARIANCE FAVORABLE 1999 BUDGET ACTUAL (UNFAVORABLE) ACTUAL General Government: Legislative: Personal services $ 20,668 $ 20,668 $ $ 20,561 Operating expenses 13,004 14,658 (1,654) 7,968 Total Legislative 33,672 35,326 (1,654) 28,529 Executive: Personal services 135,173 139,398 (4,225) 142,474 Operating expenses 8,520 7,600 920 5,619 Capital outlay 900 385 515 1,913 Total Executive 144,593 147,383 (2,790) 150,006 Finance and Administrative: Personal services 273,472 274,804 (1,332) 240,659 Operating expenses 77,845 99,121 (21,276) 121,991 Capital outlay 24,926 21,559 3,367 97,105 Debt service 55,101 55,893 iIL21 7,930 Total Finance and Administrative 431,344 451,377 (20,033) 467,685 Legal Services: Operating expenses 35,000 32,800 2,200 11,816 Total Legal Services 35,000 32,800 2,200 11,816 Planning and Zoning: Personal services 234,030 216,777 17,253 188,448 Operating expenses 105,071 54,310 50,761 146,583 Capital outlay 32,022 10,315 21.707 47,315 Total Planning and Zoning 371,123 281,402 89,721 382,346 Other General Services: Personal services 183,282 169,034 14,248 31,647 Operating expenses 145,495 78,726 66,769 33,303 Capital outlay 96,200 43,778 52,422 137,631 Debt service 4,593 (4,593) Total Other General Services 424,977 296,131 128,846 202,581 Total General Government 1,440,709 1,244,419 196,290 1,242,963 (continued) B-43 CITY OF CLERMONT, FLORIDA GENERALFUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 Public Safety: Law Enforcement: Personal services Operating expenses Capital outlay Total Law Enforcement Fire Control: Personal services Operating expenses Capital outlay Debt service Total Fire Control Total Public Safety Physical Environment: Public Works: Personal services Operating expenses Capital outlay Total Physical Environment Transportation: Road and Streets: Personal services Operating expenses Capital outlay Total Transportation BUDGET 1,294,664 169,463 1,533,338 VARIANCE FAVORABLE 1999 ACTUAL (UNFAVORABLE) ACTUAL 1,294,297 203,370 77,914 1,575, 581 367 (33, 907) (8,703) t42,243) 1,151,081 161,332 153,224 1,465,637 293,679 265,854 27,825 142,281 63,740 63,765 (25) 92,514 475,079 510,092 (35,013) 28,834 83,961 40,210 43,751 4,178 916,459 879,921 36,538 267,807 2,449,797 2,455,502 (5,705) 1,733,444 102,959 90,376 12,583 83,362 44,066 51,423 (7,357) 34,867 1,000 47 953 23,523 148,025 141,846 6,179 141,752 229,447 207,707 62,800 499,954 204,541 199,532 61,679 465,752 24,906 8,175 1,121 34,202 222,277 153,703 43,850 419,830 (continued) B-44 CITY OF CLERMONT, FLORIDA GENERALFUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 Economic Environment: Economic Development: Operating expenses Capital outlay Total Economic Environment Human Services: Animal Control: Personal services Operating expenses Total Human Services Culture and Recreation: Library: Operating expenses Debt service Total Library Parks and Recreation: Personal services Operating expenses Capital outlay Total Parks and Recreation Total Culture and Recreation TOTAL EXPENDITURES BUDGET $ 21,335 1,500 22,835 VARIANCE FAVORABLE 1999 ACTUAL (UNFAVORABLE) ACTUAL $ 24,086 $ (2,751) $ 7,038 1,500 509 25,586 (2,751) 7,547 18,490 19,981 (1,491) 20,491 5,865 4,933 932 5,303 155,404 154,922 482 142,908 5,904 5,910 t6) 6,150 161,308 160,832 476 149,058 435,675 375,729 59,946 292,673 237,509 339,007 (101,498) 293,411 929,318 837,807 91,511 479,617 1,602,502 1,552,543 49,959 1,065,701 1,763,810 1,713,375 50,435 1,214, 759 $ 6,349,485 $ 6,071,394 $ 278,091 $ 4,786,089 B-45 »- »ar - �©- 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 2002. The proceeds and interest accrued thereto, by law are only to be used to finance, plan and construct infrastructure. IMPACT FEE FUND To account for the recreation, police and 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 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 INFRA- BLOCK STRUCTURE IMPACT FEE GRANT TOTALS ASSETS FUND FUND FUND 2000 1999 Cash and equivalents $ 34,943 $ 286,810 $ 254 $ 322,007 $ 169,578 Investments 431,481 423,755 ... $55,236 230,292 Due from other government 60,545 ... ... 60,545 40,712 Mortgages receivable ... 210,006 210,006 302,983 Developer credits ... 78,892 ... 78.892 TOTAL ASSETS $ 526,969 $ 789,457 $ 210,260 $ 1,526,686 $ 743,565 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 27,120 $ $97 $ $ 28,017 $ 14 Deferred revenue 210,006 210,006 302,983 Total Liabilities 27,120 897 210,006 238,023 302,997 Fund Balance 499,849 788,560 254 1.288,663 440.568 TOTAL LIABILITIES AND FUND BALANCE $ 526,969 $ 789,457 $ 210,260 $ 1,526,686 $ 743,565 B-46 CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 Revenues: Taxes Intergovernmental Miscellaneous: Interest Impact fees Total Revenues Expenditures: Current: General Government Transportation Economic environment Culture and recreation Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues Over Expenditures and Other Financing Fund Balances - October 1 FUND BALANCES - SEPTEMBER 30 INFRA- BLOCK STRUCTURE IMPACT FEE GRANT FUND FUND FUND $ 598,313 $ $ 18,312 38,917 1 996,145 616,625 1,035.062 1 TOTALS 2000 1999 $ 598,313 $ 547,480 ... 33,963 57,230 17,470 996.145 240,412 1,651,688 839,325 ... ... ... ... 38,694 29,201 ... 29,201 17,556 ... ... ... ... 28,564 20,048 20.048 133,200 49,249 49,249 2� 18,014 567.376 1,035,062 1 1,602.439 621,311 (247,307) (507,037) (754,344) (380,080) (247,307) (507.037) (754.344} (380.080)_ 320,069 528,025 1 848,095 241,231 179.780 260.535 253 440.568 199,337 $ 499,849 $ 788,560 $254 $ 1,288,663� $ 440,568 B-47 CITY OF CLERMONT, FLORIDA INFRASTRUCTURE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 VARIANCE FAVORABLE 1999 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues: Taxes $ 525,000 $ 598,313 $ 73,313 $ 547,480 Miscellaneous: Interest 1,500 18,312 16,812 7,358 Total Revenues 526,500 616,625 90,125 554,838 Expenditures: Current: General government ... ... ... 38,694 Transportation 240,000 29,201 210,799 17,556 Culture and recreation 20,048 (20,048) 133,200 Total Expenditures 240,000 49,249 190,751 189,450 Excess of Revenues Over Expenditures 286,500 567,376 280,876 365,388 Other Financing Sources (Uses): Operating transfers out (250,060) (247,307) 2,753 (248,080) Total Other Financing Sources (Uses) (250,060) (247,307) 2,753 (248,080) Excess of Revenues Over Expenditures and Other Financing 36,440 320,069 283,629 117,308 Fund Balance - Beginning of Year 179,780 179,780 62,472 FUND BALANCE - END OF YEAR $ 216,220 $ 499,849 $ 283,629 $ 179,780 B-48 CITY OF CLERMONT, FLORIDA IMPACT FEE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 VARIANCE FAVORABLE 1999 BUDGET ACTUAL UNFAVORABLE) ACTUAL Revenues: Miscellaneous: Interest $ 6,100 $ 38,917 $ 32,817 $ 10,014 Impact fees 365,100 996,145 631,045 240,412 Total Revenues 371,200 1,035,062 663,862 250,426 Expenditures: Debt service: Public safety 62,600 62,600 Total Expenditures 62,600 62,600 Excess of Revenues Over Expenditures 308,600 1,035,062 726,462 250,426 Other Financing Sources (Uses): Operating transfers out (300,987) (507,037), (206,050) _�132,000) Total Other Financing Sources (Uses) (300,987) (507,037) (206,050) (132,00� Excess of Revenues Over Expenditures and Other Financing 7,613 528,025 520,412 118,426 Fund Balance - Beginning of Year 260,535 260,535 142,109 FUND BALANCE - END OF YEAR $ 268,148 $ 788,560 $ 520,412 $ 260,535 B-49 DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. SALES TAX REVENUE BOND SINKING FUND To account for the accumulation of funds and payment of debt service pertaining to the 1989 Sales Tax Revenue Bond. The City's share of the local government infrastructure surtax has been pledged to pay the 1989 Sales Tax Bond debt service. A portion of the surtax revenue is transferred to the sales tax bond fund monthly. CITY OF CLERMONT, FLORIDA SALES TAX REVENUE BOND SINKING FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2000 AND 1999 TOTALS ASSETS 2000 1999 Cash and equivalents $ 83,170 $ 84,437 TOTAL ASSETS $ 83,170 $ 84,437 FUND BALANCE Fund Balance: Reserved for debt service - principal $ 70,000 $ 66,667 Reserved for debt service - interest 13,170 17,770 TOTAL FUND BALANCE $ 83,170 $ 84,437 B-50 CITY OF CLERMONT, FLORIDA SALES TAX REVENUE BOND SINKING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 2000 Revenues: Miscellaneous: Interest Total Revenues Expenditures: Debt Service: Fees Interest Principal Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources: Operating transfers in Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR BUDGET ACTUAL $ 4,000 $ 5,486 4,000 5,486 750 750 53,310 53,310 200,000 200,000 254,060 254,060 (250,060) (248,574) VARIANCE FAVORABLE 1999 (UNFAVORABLE)_ ACTUAL $ 1,486 $ 4,861 1,486 4.861 ... 1,561 ... 65,982 185,000 252,543 1,486 (247,682) 250,060 247,307 (2,753) 248,080 ... (1,267) (1,267) 398 84,437 84,437 84,039 $ 84,437 $ 83,170 $ [1,267} $ 8�4,437 B-51 CAPITAL PROJECT FUND The Capital Project Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities when the project is financed over several accounting periods. BUILDING CONSTRUCTION FUND To account for the financing and construction of Fire Station #1 and new City Hall. ASSETS Investments Accounts receivable Prepaid items TOTAL ASSETS CITY OF CLERMONT, FLORIDA BUILDING CONSTRUCTION FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2000 AND 1999 LIABILITIES AND FUND BALANCE Liabilities Contracts payable - retainage Fund Balance TOTAL LIABILITIES AND FUND BALANCE TOTALS 2000 $ 1,275,801 $ 2,877 4,000 $ 1,282,678 $ 194,634 $ 1,088,044 $ 1,282,678 $ 1999 B-52 CITY OF CLERMONT, FLORIDA BUILDING CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED SEPTEMBER 30, 2000 PROJECT PRIOR CURRENT TOTAL AUTHORIZATION YEARS YEAR TO DATE Revenues: Miscellaneous Interest Total Revenues Expenditures: Capital outlay: City Hall (see note below) Fire Station Total Capital Outlay Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Debt proceeds Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balance - October 1 FUND BALANCE - SEPTEMBER 30 $ 42,000 $ $ 8,224 $ 8,224 42,000 8,224 8.224 4,631,000 130,839 58,710 189,549 1.140.000 137,027 593,604 730.631 5.771.000 267,866 652,314 920180 :5 729.0001 (267,866) (644.090) (911.956) 5,229,000 ... 2,000,000 2,000,000 767,866 267,866 ... 267,866 i267,866y (267.866) (267.866) 5,729,000 267.866 1.732,134 2,000,000 $ $ 1,088,044 $ 1,088,044 $ 1,088,044 (This amount represents the City's best estimate of the City Hall project costs) B-53 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 charge; 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. ASSETS Current Assets: Cash and equivalents Investments Receivables: Accounts Interest Other Due from other governments Prepaid items Inventory Total Current Assets Restricted Assets: Cash and equivalents Investments Total Restricted Assets Other Assets: Deferred charges Property, Plant and Equipment Land Water system Sewer sytem Improvements other than buildings Machinery and equipment Less accumulated depreciation Net Property, Plant and Equipment TOTAL ASSETS CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 WATER SEWER SANITATION STORMWATER TOTALS FUND FUND FUND FUND 2000 1999 $ 240,244 $ 260,650 $ 9,175 $ 117,443 $ 627,512 $ 545,169 1,015,058 329,954 49,654 11,154 1,405,820 1,042,169 196,245 126,742 86,967 19,655 429,609 328,442 3,578 571 ... ... 4,149 13,895 9,079 ... ... ... 9,079 496 ... ... ... ... ... 3,141 ... ... 4,333 ... 4,333 4,787 33.503 ... ... ... 33.503 26.097 1.497, 707 717,917 150,129 148.252 2,514,005 1, 964,196 682,121 956,547 ... ... 1,638,668 1,172,229 1,846,055 3,928,689 5,774,744 2,809,518 2.528,176 4,885.236 7,413,412 3,981.747 51,300 122.492 173.792 214,379 224,209 1,239,920 ... ... 1,464,129 1,464,129 8,628,853 ... ... ... 8,628,853 8,562,929 ... 12,810,150 ... ... 12,810,150 12,300,474 ... ... 541,315 541,315 454,807 341,804 404.843 833,592 97.528 1.677,767 1,514,335 9,194,866 14,454,913 833,592 638,843 25,122,214 24,296,674 2,976 819 3,578,709 621,062 70.947 7,247,537 6,569.236 6.218.047 10.876,204 212,530 567.896 17,674.677 17.727.438 $$ 10295,2300 $ 16,601,849 $$ 3�62,6599 $ 716,148 $ 27,975,886 $ 23.887.760 B-54 WATER SEWER SANITATION STORMWATER TOTALS LIABILITIES AND FUND EQUITY FUND FUND FUND FUND 2000 Liabilities: Current Liabilities (payable from current assets): 1999 Accounts payable $ 34,848 $ 272,478 $ 23,620 $ 23,439 $ 354,385 $ 156,256 Contracts payable ... ... ... 20,338 Other accrued expenses 38,642 11,669 10,459 573 61,343 75,113 Interfund payables 7.008 6,665 3.275 991 17,939 13,380 Total Current Liabilities - (payable from current assets) 80,498 290.812 37.354 25,003 433,667 265,087 Current Liabilities (payable from restricted assets): Deposits 94,751 ... ... ... 94,751 89,459 Accrued interest 72,226 107,950 ... ... 180,176 182,756 Revenue bonds 55,100 134,900 190.000 180,000 Total Current Liabilities (payable from restricted assets) 222.077 242,850 464,927 452 215 Long -Term Liabilites: Revenue bonds (net of current portion and deferred refunding amount) 4.451,366 5,965,451 10,416,817 10.587,597 Total Long -Term Liabilities 4,451,366 5,965,451 10,416,817 _10,587,597 Total Liabilities 4,753.941 6,499,113 37,354 25.003 11,315,411 11.304,899 Fund Equity: Contributed capital 2,592,697 8.252,325 101,722 136,547 11,083,291 7,273,400 Refined Earnings Reserved for debt service 158,861 86,660 ... ... 245,521 Reserved for expansion 2,147,237 1,763,751 ... ... 3,910, 988 Unreserved 642.494 223.583 554,598 1.420675 Total Retained Earnings 2.948,592 1.850.411 223,583 554598 5,577,184 Total Fund Equity 5.541.289 10 102,736 325,305 691,145_ 16 660,475 TOTAL LIABILITIES AND FUND EQUITY $ 10,295,230 $ 16,601,849 $ 362,659 $ 716,148 $ 27,975.886 276,075 3,124,708 1.908.678 5.309 461 12 582.861 $ 23,887,760 B-55 CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 WATER SEWER SANITATION STORMWATER FUND FUND FUND FUND Operating Revenues TOTALS 2000 1999 Charges for services $ 2,109,731 $ 1,306,691 $ 879,204 $ 183,271 $ 4,478,897 $ 3,673,076 Miscellaneous 14,610 16.548 10 327 41,485 14,253 Total Operating Revenues 2,124,341 1,323,239 889.531 183,271 4,520,382 3,687,329 Operating Expenses: Personal services 413,063 409,910 302,043 53,420 1,178,436 1,061,074 Utilities 155,924 211,662 ... ... 367,586 343,481 Dumping fees ... ... 291,682 7,603 299,285 309,003 Administrative services 151,458 150,016 39,060 27,497 368,031 226,632 Repair and maintenance 97,898 91,366 23,069 8,421 220,754 292,312 Depreciation 258,025 324,143 77,858 18,275 678,301 646,887 Professional services 62,575 62,622 180,724 12,979 318,900 187,848 Insurance 9,848 34,448 10,744 1,790 56,830 37,971 Operating supplies 189,623 31,520 30,299 1,218 252,660 112,378 Office expense 26,648 20,635 4,245 1,548 53,076 44,187 Bad debt 2446 1,276 1.522 306 5.550 9.102 Total Operating Expenses 1,367,508 1,337,598 961 246 133.057 3799,409 3.269,875 Operating Income (Loss) 756,833 (14,359) (71,715) 50,214 720,973 417,454 Nonoperating Revenues (Expenses): Interest revenue 151,402 233,387 5,044 6,969 396,802 178,039 Interest expense (243,978) (343,319) ... ... (587,297) (611,491) Grants/contributions ... ... 3,447 ... 3,447 3,141 Change in fair value 24 242 ... ... ------------ 24,242 4.257 Total Nonoperating Revenues (Expenses) (68,334) (109 932) 8,491 6,969 (162,806) 1,426.054]_ Income (Loss) Before Operating Transfers 688,499 (124,291) (63,224) 57,183 558,167 (8,600) Operating transfers (out) 208 259) (77,785) (2,9781 (1,422) 1290,444) (151 337} Net Income (Loss) 480,240 (202,076) (66,202) 55,761 267,723 (159,937) Retained Earnings - October 1 2,468,352 _ 2,052,487 289,785 498 837 5.309,461 5,469,398 RETAINED EARNINGS - SEPTEMBER 30 $ 2.948 592 $ 1,850,411 $ 223,583 $ 554,598 $ 5,577,184 $ 5,309,461 B-56 CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.1999 WATER SEWER SANITATION STORMWATER TOTALS FUND FUND FUND FUND _ 2000 1999 Cash Flows From Operating Activities: Charges for services $ 2,075,892 $ 1,304,327 $ 867,833 $ 178,182 $ 4,426,234 $ 3,658,113 Cash payments to suppliers (720,752) (396,564) (592,793) (61,724) (1,771,833) (1,561,719) Cash payments for employee services {411,173? 416,3821 [305,362; (54,731) �[1,187648) f1,042.294r Net Cash Provided (Used) By Operating Activities 943,967 491381 (30,32Z 61,727 1,466.753 1,054100 Cash Flows From NonCapital Financing Activities: Operating transfers out (208,259) (77,785) (2,978) (1,422) (290,444) (151,337) Grants/oontributions 6 588 6,588 2.802 Net Cash Provided (Used) By NonCapitalFinancing Activities (208259) (77,785) 3,610 (1,422) (283,856) (148,535) Cash Flows From Capital and Related Financing Activities: Acquisition and construction of capital assets (121,115) (576,230) (41,687) (86,508) (825,540) (773,234) Principal paid (52,200) (127,800) ... ... (180,000) (175,000) Interest paid (225,969) (304,100) ... (530,069) (553,085) Contributed capital 910,320 2,899,171 ... 3,809,891 1,697,806 Sale of assets ... 30,125 Net Cash Provided (Used) By Capital and Related Financing Activities 511 436 1,891,041 (41T687) (86,508) 2.274,282 226.612 Cash Flows From Investing Activities: Interest 147,824 236,402 5,044 6,969 396,239 174,949 Investment sales ... ... 5,468 ... 5,468 10,592 Investment purchases (1,109,848) +2,199,6491_ (607) _{3,310,104) (617698) Net Cash Provided (Used) By Investing Activities (962,024) (1,963,247) 10.512 6,362 f2,908,397) {432,157) Net Increase (Decrease) in Cash and Equivalents 285,120 341,390 (57,887) (19,841) 548,782 700,020 Cash and Equivalents at Beginning of Year 637.245 875.807 67.062 137.284 1,717,398 1.017.378 Cash and Equivalents at End of Year $ 922.365 $ 1.217.197 $ 9,175 $ 117,443 $ 2.266,180 $ 1.717.398 B-57 WATER SEWER SANITATION STORMWATER TOTALS FUND FUND FUND FUND 2000 1999 Reconciliation of Operating Income To Net Cash Provided By Operating Activities: Operating income (Loss) $ 756,833 $ (14,359) $ (71,715) $ 50,214 $ 720,973 $ 417,454 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 258,025 324,143 77,858 18,275 678,301 645,887 Change in Assets and Liabilities: Decrease (Increase) in receivables (53,742) (18,912) (21,698) (5,089) (99,441) (32,449) Decrease (Increase) in prepaids 113 158 113 70 454 2,316 Decrease (Increase) in inventory (7,407) ... ... ... (7,407) 1,809 Increase (Decrease) in deposits 5,293 ... ... 5,293 3,233 Increase (Decrease) in accrued expenses 1,890 (6,472) (3,319) (1,311) (9,212) 17,644 Increase (Decrease) in payables (17,038) 206,823 (11,561) (432) 177,792 (1,794) Total Adjustments 187,134 505,740 41,393 11,513 745,780 636,646 Net Cash Provided (Used) by Operating Activities $ 943,967 $ 491.381 $�30 3� $ 61,727 $ 1466.753 $ 1,054100 B-58 INTERNAL SERVICE FUND The Internal Service Fund is used to account for the financing of goods or services provided by one department to the other departments on a cost reimbursement basis. GROUP SELF-INSURANCE FUND To account for the City's retention of risk financing arising from employee medical and dental expense claims. Costs are billed based on historical costs and to the various departments. CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2000 AND 1999 TOTALS ASSETS 2000 1999 Investments $ $ 64,281 TOTAL ASSETS $ $ 64,281 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ 37,212 $ 20,349 Interfund payable 11 TOTAL LIABILITIES 37,223 20,349 Retained Earnings: Unreserved (37,223) 43,932 TOTAL LIABILITIES AND FUND EQUITY $ $ 64,281 B-59 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999 TOTALS 2000 1999 Operating Revenues: Charges for services $ 451,120 $ 367,882 Insurance stop -loss payments 16,449 43,795 Total Operating Revenues 467,569 411,677 Operating Expenses: Re -insurance premiums 59,330 49,886 Administrative fees 23,587 20,793 Medical claims 467,034 386,894 Total Operating Expenses 549,951 457,573 Operating Income (Loss) (82,382) (45,896) Nonoperating Revenues: Interest revenue 1,227 5,404 Net Income (Loss) (81,155) (40,492) Retained Earnings - October 1 43,932 84,424 RETAINED EARNINGS - SEPTEMBER 30 $ (37,223) $ 43,932 B-60 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE STATEMENT OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999 TOTALS Cash Flows From Operating Activities: Cash received from customers Cash payments to suppliers Cash payments for medical claims Net Cash Used By Operating Activities Cash Flows From Investing Activities: Interest Investment sales Net -Cash Provided By Investing Activities Net Decrease in Cash Cash at Beginning of Year Cash at End of Year Reconciliation of Operating Income to Net Cash Used By Operating Activities: Operating (loss) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) By Operating Activities: Increase (Decrease) in payables Net Cash Used By Operating Activities $ 467,569 $ 411,677 (82,917) (70,679) (450,160) (398,869) (65,508) (57,871) 1,227 5,404 64,281 42,942 65,508 48,346 ... (9,525) 9,525 $ $ $ (82,382) $ (45,896) 16,874 (11,975) $ (65,508) $ (57,871) B-61 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: CEMETERY 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: COMMUNITY 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 FIDUCIARY FUND TYPES SEPTEMBER 30, 2000 AND 1999 EXPENDABLE PENSION TRUST TRUST NONEXPENDABLE FUND FUNDS TRUST COMMUNITY CEMETERY REDEVELOPMENT PUBLIC PERPETUAL TOTALS FUND EMPLOYEES CARE 2000 1999 ASSETS Cash and equivalents $ 1,667 $ $ 17,990 $ 19,657 $ 35,993 Investments ... 5,753,472 308,060 6,061,532 5,315,699 Interfund receivable 63.481 63.481 50,583 Total Assets $ 1,667 $ 5,816.953 $ 326,050 $ 6.144.670 $ 5402,275 FUND BALANCES Reserved for downtown redevelopment $ 1,667 $ $ $ 1,667 $ 17,515 Net assets held in trust for pension benefits ... 5,816,953 ... 5,816,953 5,076,435 Reserved for cemetery care _ 326,050 326.050 308,325 Total Fund Balance $ 1,667 $ 5,816,953 $ 326.050 $ 6.144,670 $ 5,402.275 T. B-62 CITY OF CLERMONT, FLORIDA EXPENDABLE TRUST FUND COMMUNITY REDEVELOPMENT FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 2000 AND 1999 ASSETS Cash and equivalents TOTAL ASSETS FUND BALANCE Fund Balance: Reserved for downtown redevelopment ___ 2000 $ 1,667 $ 1,667 $ 1,667 TOTALS 1999 $ 17,515 $ 17,515 $ 17,515 B-63 CITY OF CLERMONT, FLORIDA EXPENDABLE TRUST FUND COMMUNITY REDEVELOPMENT FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999 TOTALS 2000 1999 Revenues: Ad valorem taxes $ 28,163 $ 12,276 Interest 1,578 820 Total Revenues 29,741 13,096 Expenditures: Transportation 130,550 ... Economic environment 20,000 Total Expenditures 150,550 Excess (deficiency) of revenues over expenditures ( 120-809) 13.096 Other financing sources: Operating transfer in 14,961 4,419 Debt proceeds 90,000 Total other financing sources 104.961 4,419 Excess (deficiency) of revenues and other financing sources over expenditures (15,848) 17,515 Fund Balance - Beginning of Year 17,515 Fund Balance - End of Year $ 1,667 $$ 17,515 B-64 CITY OF CLERMONT, FLORIDA PENSION TRUST FUNDS COMPARATIVE STATEMENT OF PLAN NET ASSETS SEPTEMBER 30, 2000 AND 1999 GENERAL EMPLOYEES Defined Defined Benefit Contribution ASSETS Police Firefighter Pension Pension TOTALS 2000 1999 Investments (at fair value) $ 1,129,302 $ 1,433,390 $ 2,410,304 $ 780,476 $ 5,753,472 $ 5,025,862 Receivables Interfund 46,316 17,165 63,481 50.583 TOTAL ASSETS $ 1,129,302 $ 1,479,706 $ 2,427,469 $ 780,476 $ 5,816,953 $ 5,076,435 LIABILITIES Net assets held in trust for pension benefits $ 1,129,302 $ 1,479,706 $2,427.469 $ 780476 $ 5,816.953 $ 5,0�76,435 B-65 CITY OF CLERMONT, FLORIDA PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999 GENERAL EMPLOYEES TOTALS Defined Defined Police Firefighter Benefit Contribution Pension Pension 2000 1999 Additions Contributions Employer $ 6,818 $ 135,688 $ 17,165 $ $ 159,671 $ 134,167 Plan members ... ... 8,203 2,126 10,329 8,041 State ... ... ... 15,998 15,998 121.083 Total Contributions 6,818 135,688 25,368 18,124 185.998 263,291 Investment income 156,991 190,754 328,870 105,387 782,002 561,994 Less: Investment expenses 4.682 5,574 7,098 5,519 22,873 21,887 Net investment income 152,309 185,180 321,772 99,868 759.129 540,107 Total Additions 159.127 320.868 347,140 117,992 945,127 803,398 Deductions Benefits/distributions 75,920 48.185 79.316 1,188 204.609 217,119 Net increase 83,207 272,683 267,824 116,804 740,518 586,279 Net assets held in trust for pension benefits Beginning of year 1,046,095 1,207,023 2,159,645 663,672 5,076,435 4,490,156 End of Year $ 1,129.302 $ 1,479.706 $ 2,427,469 $ 780,476 $ 5,816.953 $ 5,076,435 B-66 CITY OF CLERMONT, FLORIDA NONEXPENDABLE TRUST FUND CEMETERY PERPETUALCARE-FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 2000 AND 1999 TOTALS ASSETS 2000 1999 Cash and equivalents $ 17,990 $ 18,478 Investments 308,060 289,847 TOTAL ASSETS $ 326,050 $ 308,325 FUND BALANCE Fund Balance: Reserved for cemetery care $ 326,050 $ 308,325 B-67 CITY OF CLERMONT, FLORIDA NONEXPENDABLE TRUST FUND CEMETERY PERPETUAL CARE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999 TOTALS 2000 1999 Operating Revenues: Sales - cemetery lots $ 17,725 $ 24,625 Operating Expenses: Operating supplies 133 Operating income 17,725 24,492 Fund Balance - Beginning of Year 308,325 283,833 Fund Balance - End of Year $ 326,050 $ 308,325 B-68 CITY OF CLERMONT, FLORIDA NONEXPENDABLE TRUST FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 TOTALS 2000 1999 Cash Flows from Operating Activities: Cash received from customers Cash payments to suppliers Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Investment purchases Net Increase (Decrease) in Cash and Equivalents Cash and Equivalents at Beginning of Year Cash and Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income Net Cash Provided by Operating Activities $ 17,725 $ 24,625 (133) 17,725 24,492 (18,213) (18,037) (488) 6,455 18,478 12,023 $ 17,990 $ 18,478 $ 17,725 $ 24,492 $ 17,725 $ 24,492 B-69 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. GENERAL LONG-TERM DEBT ACCOUNT GROUP This is a self -balancing account group used to record the principal portion of the City's general long-term debt that is not related to the proprietary fund operations or accounted for in trust funds. CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES FOR THE YEAR ENDED SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 TOTALS 2000 1999 General Fixed Assets: Land $ 1,535, 811 $ 1,535, 811 Buildings 3,564,285 2,911,970 Improvements other than buildings 6,653,653 5,751,296 Equipment and vehicles 3,119,402 2,526,485 Total General Fixed Assets $ 14,873,151 $ 12,725,562 Investments in General Fixed Assets From: Capital Projects Funds: Revenue bonds $ 2,954,726 $ 2,302,411 Federal, state and local grants 1,070,247 720,247 General Fund revenues 7,617,339 6,662,141 Special Revenue Fund revenues 2,454,862 2,406,786 Gifts and other 775,977 633,977 Total Investment in General Fixed Assets $ 14,873,151 $ 12,725,562 B-70 FUNCTION General government Public safety Physical environment Transportation Culture/recreation Older assets not maintained by function TOTAL GENERAL FIXED ASSETS CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AS OF SEPTEMBER 30, 2000 TOTAL LAND $ 835,325 $ 208,848 3,692,970 183,458 1,157, 862 47,168 2,536,620 ... 6,169,189 868,229 481,185 228,108 $ 14,873151 $$ 1,535,811 IMPROVEMENTS OTHER THAN BUILDINGS BUILDINGS EQUIPMENT $ 83,896 $ $ 542,581 1,727,425 ... 1,782,087 721,814 98,938 289,942 ... 2,391,270 145,350 945,880 4,017,072 338,008 85,270 146,373 21434 $ 3,564,285 $ 6,653,653 $ 3,119,402 B-71 CITY OF CLERMONT, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSET BY FUNCTION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 GENERAL GENERAL FIXED FIXED ASSETS ASSETS FUNCTION 09/30/99 ADDITIONS DEDUCTIONS 9/30/00 General government $ 712,305 $ 123,020 $ $ 835,325 Public safety 2,668,235 1,106,375 81,640 3,692,970 Physical environment 1,165,445 ... 7,583 1,157,862 Transportation 2,456,016 80,604 ... 2,536,620 Culture/recreation 5,242,376 926,813 ... 6,169,189 Older assets not maintained by function 481.185 _ 481,185 TOTAL GENERAL FIXED ASSETS $ 12,725,562 $ 2,236,812 $ 89.223 $ 14,873,151 B-72 CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL LONG-TERM DEBT SEPTEMBER 30, 2000 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 Amount To Be Provided For The Payment of General Long -Term Debt Amount available for principal payment in debt service fund Amount to be provided Total to be Provided General Lono-Term Debt Payable Line of credit Revenue bonds payable Notes payable - System upgrade r& firetruck Note payable - Parking lot property Note payable - Library Total General Long -Term Debt Payable TOTALS 2000 1999 $ 70,000 $ 66,667 3,238,540 1,122.395 $$ 3 $ 89,062 $ 2,000,000 $ 565,000 765,000 630,894 397,000 90,000 ... 22,646 27,062 $ 3,308,540 $ 1,189,062 B-73 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, 2000 The following Statistical Tables recommended by the National Council on Governmental Accounting are not included for the reasons stated below: • Tables that concern General Obligation Debt are omitted because neither the City nor other overlapping Governments has incurred tax -supported debt. • 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. C-1 CITY OF CLERMONT, FLORIDA EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS FISCAL GENERAL PUBLIC PHYSICAL YEAR GOVERNMENT SAFETY ENVIRONMENT 1990-91 $440,789 $830,411 $99,989 1991-92 397,880 931,441 101,512 1992-93 446,284 997,295 137,960 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 1,633,630 152,476 1998-99 1,059,558 1,733,444 137,219 1999-00 942,498 3,049,106 134,486 (1) Includes General, Special Revenue, and Capital Projects Funds. (2) Community Development Block Grant expenditures were included in the 1992-93, 1995-96, 1996-97, 1997-98 and 1998-99 Fiscal Years. C• TABLE 1 (2) ECONOMIC HUMAN CULTURE AND TRANSPORTATION ENVIRONMENT SERVICES RECREATION TOTAL $330,476 $9,283 $13,665 $435,748 $2,160,361 249,736 11,817 13,650 503,764 2,209,800 283,169 545,518 15,317 518,837 2,944,380 257,539 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 C-3 CITY OF CLERMONT, FLORIDA REVENUE BY SOURCE (1) LAST TEN FISCAL YEARS LICENSES FISCAL AND INTER - YEAR TAXES PERMITS GOVERNMENTAL 1990-91 $1,281,612 $28,917 $786,966 1991-92 1,676,117 41,127 721,510 1992-93 1,793,267 40,054 857,841 1993-94 1,983,016 39,910 505,432 1994-95 2,142,822 67,549 576,484 1995-96 2,377,962 84,260 665,899 1996-97 2,497,102 97,347 988,581 1997-98 2,769,826 133,595 1,012,582 1998-99 3,171,446 149,702 872,081 1999-00 3,911,066 188,517 959,751 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. C-4 CHARGES FOR �FRVI�FS $19,327 32,676 36,662 38,402 57,241 32,537 46,354 42,459 44,336 60,148 FINES AND FORFEITURES $69,571 90,039 75,224 91,066 152,020 151,879 128,047 160,522 108,720 174,044 INTEREST ON INVESTMENTS $106,962 84,415 49,740 9,906 86,600 102,405 81,605 85,140 86,799 148,136 MISCELLANEOUS $66,917 55,515 154,318 122,270 510,081 244,904 224,626 293,853 311,494 1,258,318 TABLE 2 TnTAI $2,360,272 2,701,399 3,007,106 2,790,002 3,592,797 3,659,846 4,063,662 4,497,977 4,744,578 6,699,980 C-5 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 1990-91 1990 $164,683,728 $148,215,355 2.729 1991-92 1991 185,301,076 166,770,968 2.729 1992-93 1992 190,878,314 171,790,483 2.729 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 (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. 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 $404,480 $392,259 97.0% $1,095 $393,354 97.2% 455,118 439,404 96.5% 2,045 441,449 97.0% 468,816 452,756 96.6% 496 453,252 96.7% 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% C-7 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 1990-91 1990 2.729 4.938 0.000 1991-92 1991 2.729 4.938 0.000 1992-93 1992 2.729 4.864 0.000 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 (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. c-8 TABLE 4 LAKE COUNTY OKLAWAHA SOUTH LAKE ST. JOHNS RIVER SCHOOL WATER HOSPITAL WATER MANAGEMENT DISTRICT DISTRICT DISTRICT DISTRICT TOTAL 8.749 0.771 2.000 0.358 19.545 8.880 0.751 2.000 0.358 19.656 9.005 0.740 2.000 0.358 19.696 8.938 0.517 2.000 0.470 20.039 8.515 0.400 2.000 0.482 19.511 9.678 0.384 2.000 0.482 20.450 9.228 0.384 2.000 0.482 19.982 9.100 0.384 2.000 0.482 19.678 9.190 0.384 2.000 0.482 19.768 8.742 0.500 1.000 0.482 19.036 C-9 Ah.- Ak- CITY OF CLERMONT, FLORIDA WATER AND SEWER CUSTOMER DATA LAST TEN FISCAL YEARS NUMBER OF CUSTOMERS FISCAL WATER YEAR RESIDENTIAL COMMERCIAL SEWER RESIDENTIAL COMMERCIAL 1990-91 N/A N/A N/A N/A 1991-92 2419 355 1849 307 1992-93 2484 366 1893 313 1993-94 2526 385 1931 330 1994-95 3136 392 1978 350 1995-96 3483 391 2334 358 1996-97 3987 439 2770 386 1997-98 4549 447 3099 388 1998-99 5009 490 3328 443 1999-00 5992 531 3928 458 Source: Water and Sewer Customer Data Reports as of September 30 TABLE 5 ANNUAL WATER USAGE GAL 440,624,000 429,716,000 465,789,000 493,821,000 482,962,000 630,763,000 833,834,000 1,087,078,000 1,146,663,000 1,394,359,000 C-10 CITY OF CLERMONT, FLORIDA UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS LAST TEN FISCAL YEARS TOTAL (1) FISCAL SYSTEM OPERATING YEAR REVENUES EXPENSES 1990-91 $1,295,653 $743,715 1991-92 1,283,276 725,969 1992-93 1,306,683 794,614 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 (1) Excludes interest expense and depreciation. (2) Maximum debt service in any subsequent year is $932,128 C-11 TABLE 6 (2) DEBT NET SERVICE REVENUES REQUIREMENTS COVERAGE $551,938 $335,579 1.64% 557,307 339,689 1.64% 512,069 338,256 1.51 % 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% C-12 A-V CITY OF CLERMONT, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS FISCAL (1) YEAR POPULATION (2) SCHOOL ENROLLMENT TABLE 7 (3) UNEMPLOYMENT RATE 1990-91 6,910 1,975 8.7% 1991-92 6,930 2,169 7.4% 1992-93 7,013 1,482 4.3% 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% 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 Department of Labor, Bureau of Labor Market Information. C-13 CITY OF CLERMONT, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS (2) (2) COMMERCIAL RESIDENTIAL CONSTRUCTION CONSTRUCTION FISCAL # OF # OF YEAR UNITS VALUE UNITS VALUE 1990-91 1 $480,000 12 $1,214,600 1991-92 6 1,902,000 28 2,177,500 1992-93 4 5,551,684 46 3,051,541 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 DATA SOURCES: (1) Information available on countywide basis only. Data was obtained from the Federal Deposit Insurance Corporation (FDIC) (2) City of Clermont zoning clearances. (3) Taxable assessed valuation per Lake County Property Appraiser's from DR-422. (4) Non-taxable assessed valuation per Lake County Property Appraiser's office. C-14 (1) BANK DEPOSITS $1,624,935,000 1,628,750,000 1,632,882,000 1,701,038,000 1,718,591,000 1,776,670,000 2,035,941,000 2,421,416,000 2,563,111,000 2,793,537,000 ASSESSED TAXABLE PROPERTY VALUE (3) TAXARI F $148,215,355 166,770,968 171,790,483 171,032,783 186,229,064 205,855,141 213,141,778 247,468,178 291,644,380 356,980,751 TABLE 8 (4) NONTAXABLE $47,907,074 49,624,516 50,404,700 56,272,383 56,910,019 58,399,561 65,771,140 75,608,647 82,258,004 88,776,967 C-15 CITY OF CLERMONT, FLORIDA PRINCIPAL TAXPAYERS TAXPAYER Levitt Homes, Inc. 7777 Glade Rd, Suite 410 Boca Raton, FL 33434 CPF Property Investments, Inc. 8556 Palm Parkway Orlando, FL 32836 Lucas Clermont Limited Partnership 209 E. State Street Columbus, OH 43215 Lennar Homes, Inc. 700 NW 107th Avenue Miami, FL 33172 Lennar Land Partners 1110 Douglas Avenue, Suite 2040 Altamonte Springs, FL 32714 Hurtak, Family Partnership Ltd. 525 NE 58th Street Miami, FL 33137 Mercator Properties, Inc. P.O. Box 2310 Minneola, FL 34755 Health Care Reit, Inc. P.O. Box 1475 Toledo, OH 43603 Lakeworth MHP, Ltd. PO Box 359 Stuart, FL 34995 ASSESSED VALUATION AS OF 1 /1 /00 $10,068,792 $8,556,064 5,329,342 4,195,187 4,040,639 Lost Lake Reserve LC 2,967,576 33 E. Wall Street Frostproof, FL 33843 TOTAL 49,687,688 Source: 2000 City of Clermont Tax Roll, prepared by the Lake County Property Appraiser's office. C_16 TABLE 9 PERCENTAGE OF TOTAL ASSESSED VALUATION 3.45% 2.93% 2.78% 2.11% 2.01 % 1.83% 1.53% 1.44% 1.39% 1.02% 17.04% CITY OF CLERMONT, FLORIDA LARGEST EMPLOYERS FMPI C)YFR South Lake Hospital Lake County School System Westminister Care of Clermont City of Clermont CBS Builders Supply Inc. Publix Rolling Hills Ford Exceletech, Inc. KMart Bill Seidel's Chevrolet & Oldsmobile INDUSTRY Health Care Education Retirement and Nursing Municipality Construction Supplies Grocery Automobile Dealer Steel Fabrication/Erection Retail Automobile Dealer TABLE 10 NUMBER OF EMPLOYEES 454 320 150 127 102 87 73 64 53 43 C-17 CITY OF CLERMONT, FLORIDA SCHEDULE OF INSURANCE COVERAGES SEPTEMBER 30, 2000 POLICY EXPIRATION TYPE OF COVERAGE & INSURER NUMBER DATE LIABILITY Florida Municipal Liability FMIT 101 9/30/00 Self Insurer's Program WORKERS COMPENSATION Florida Municipal Self FMIT 101 9/30/00 Insurers Fund FIRE AND EXTENDED COVERAGE Florida Municipal Property FMIT 101 9/30/00 Self -Insurers Program C-18 TABLE 11 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 $19,288,522 C-19 CITY OF CLERMONT, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 2000 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 Fire Protection Number of Stations Number of Volunteer 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 9th Grade Center 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 Recreation and Culture Number of Parks Number of Libraries City Employees Full -Time Part -Time C-20 TABLE 12 1916 1962 Council -Manager Five (5) Two Years (2) Appointed 11.26 square miles 52 825 1 34 5 657 2 25 3 1 1 193 3,841 6,523 3,820,162 gallons 125 100 25 22 with 101.5 acres 1 127 4 OTHER REPORTS CLERMONT OFFICE Herbert John Greenlee, Jr., C.P.A. Jerry D. Brown, C.P.A. Suzanne M. Wolfe, C.P.A. / GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS MOUNT DORA OFFICE John S. Rice, C.P.A. Patricia A. Sykes -Amos, C.P.A. C. L. (Chip) Garner, C.P.A. Dorothy A. Kurras, C.P.A. John A. Powers, C.P.A. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and City Council City of Clermont, Florida We have audited the general purpose financial statements of the City of Clermont, Florida as of and for the year ended September 30, 2000, and have issued our report thereon dated January 30, 2001. 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 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered 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 general purpose 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 general purpose 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. This report is intended for the information of the City Council, management, and awarding agencies. However, this report is a matter of public record and its distribution is not limited. 5 0 Mount Dora, Florida February 13, 2001 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 8 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street D-1 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 , NN CLERMONT OFFICE 01 GREENLEE Herbert John Greenlee, Jr., C.P.A. KURRAS Jerry D. Brown, C.P.A. RICE & Suzanne M. Wolfe, C.P.A. "` BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SPECIFIED REQUIREMENTS The Honorable Mayor and City -Commissioners City of Clermont, Florida MOUNT DORA OFFICE John S. Rice, C.P.A. Patricia A. Sykes -Amos, C.P.A. C. L. (Chip) Garner, C.P.A. Dorothy A. Kurras, C.P.A. John A. Powers, C.P.A. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. We have examined management's assertion, included in the accompanying Management Assertion Report, that the City of Clermont, Florida complied with the allowable cost requirements established in the grant agreements applicable to the State grants and aids appropriations identified on the Schedule of State Financial Assistance during the fiscal year ended September 30, 2000. Management is responsible for the City of Clermont, Florida's compliance with those requirements. Our responsibility is to express an opinion on the City of Clermont, Florida's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City of Clermont, Florida's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City of Clermont, Florida's compliance with specified requirements. In our opinion, the City of Clermont, Florida complied, in all material respects, with the aforementioned requirements during the fiscal year ended September 30, 2000. This report is intended solely for the information and use of management of the City of Clermont, Florida, State granting agencies, and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. Mount Dora, Florida January 30, 2001 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 D-2 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 CITY OF CLERMONT Office of the Finance Director MANAGEMENT ASSERTION REPORT 1, Joseph VanZile, Finance Director, City of Clermont, Florida, hereby assert that the City of Clermont, Florida complied with allowable cost requirements of the grants and aids appropriations identified on the attached Schedule of State Financial Assistance during the fiscal year ended September 30, 2000. C�L jc� January 30, 2001 seph E. V Finance Director City of Clermont, Florida P.O. BOX 120219 • CLE NT, FLORIDA 34712-0219 PHONE: 352/394-4081 • FAX: 352/394-1452 CLERMONT OFFICE GREENLEE Herbert John Greenlee, Jr., C.P.A. KUI Jerry D. Brown, C.P.A. <I <AS `ICE Suzanne M. Wolfe, C.P.A. BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF STATE FINANCIAL ASSISTANCE The Honorable Mayor and City Council City of Clermont, Florida MOUNT DORA OFFICE John S. Rice, C.P.A. Patricia A. Sykes -Amos, C.P.A. C. L. (Chip) Garner, C.P.A. Dorothy A. Kurras, C.P.A. John A. Powers, C.P.A. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. We have audited the general purpose financial statements of the City of Clermont, Florida for the year ended September 30, 2000, and have issued our report thereon dated January 30, 2001. These general purpose financial statements are the responsibility of the City of Clermont, Florida'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 by the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. These 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Clermont, Florida, taken as a whole. The accompanying schedule of State Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule 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. Mount Dora, Florida January 30, 2001 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street D-4 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 CITY OF CLERMONT, FLORIDA SCHEDULE OF STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 2000 REVENUE STATE AGENCY/PROGRAM TITLE STATE NUMBER RECOGNIZED Florida Department of Community Affairs: DISBURSED Community Planning 99-DR-1G-06-45-02-015 $ 6,000 $ 6,000 Police Department C.P.D. Laptop Reporting 00-CJ-G3-0645-02-036 $ 7,508 $ 7,508 Florida Department of Environmental Protection: Hancock Park Project F20178 $ 100,000 $ 100,000 (Receivable at 9/30/00) D-5 CLERMONT OFFICE Herbert John Greenlee, Jr., C.P.A. Jerry D. Brown, C.P.A. Suzanne M. Wolfe, C.P.A. GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT LETTER The Honorable Mayor and City Council City of Clermont, Florida MOUNT DORA OFFICE John S. Rice, C.P.A. Patricia A. Sykes Amos, C.P.A. C. L. (Chip) Garner, C.P.A. Dorothy A. Kurras, C.P.A. John A. Powers, C.P.A. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. This report contains our comments as required by Chapter 10.554(1)(e), Rules of the Auditor General, Local Governmental Entity Audits, for the City of Clermont, Florida, for the year ended September 30, 2000. Subparagraph (1)(a) refers to whether inaccuracies, irregularities, or violations of laws, regulations or contract provisions reported in the preceding annual financial audit have been corrected. There were no such findings in the preceding annual financial audit. Subparagraph (1)(b) refers to whether recommendations made in the preceding annual audit have been followed. There were no recommendations offered in the prior audit. Subparagraph (2) refers to the City's being in a state of financial emergency during the fiscal year. The City did not experience any of the conditions described in Section 218.503(1) of Florida Statutes. Subparagraph (3) refers to the agreement of the financial report filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes with the annual financial audit report. For the year ended September 30, 2000, the financial report was in agreement in all respects. Subparagraph (4) refers to the City's investments. The City complied with Florida Statutes 218.415 in its investing of public funds. Subparagraph (6) refers to recommendations to improve the City's accounting procedures and internal controls. We offer no recommendations in this area. Subparagraph (7) refers to deteriorating financial conditions. The City did not experience any such conditions and displays no deteriorating conditions which would cause near future financial problems. Subparagraph (8) refers to illegal or improper expenditures discovered within the scope of the financial audit as well as disclosure of improper or inadequate accounting procedures, failures to properly record financial transactions, and other inaccuracies, irregularities, shortages, and defalcations discovered. Our examination did not discover any of the above items which would require disclosure. MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street D-6 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 Subparagraph (9) requires disclosure of the official title and legal authority for the entity. The City of Clermont 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 Chapter 67- 1217, Special Acts 1967, of the State of Florida. The foregoing conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in our examination of the City's financial statements, and this report does not affect our report on these financial statements dated January 30, 2001. This report is intended solely for the use of management and the State of Florida and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City of Clermont and the State of Florida, is a matter of public record. '110 0.14. Clermont, Florida February 13, 2001 D-7