Comprehensive Annual Financial Report - 2019-2020,(fc
C L E. ANT
-';; Choice of Champions
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Fiscal Year Ended September 50, 2020
City of Clermont, Florida
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CLERMONT
-A600700hoice of Champions°
Boating is a way of life for many
Clermont residents. Special
memories are made cruising along
the pristine Clermont Chain of
Lakes, soaking up the sun and
admiring Clermont's beautiful hills
on the horizon. When the city's new
boat ramp opened in January
2020, boaters were delighted to
have twice the launching pads,
increased parking and added
mooring slips. Valuable feedback
from the community helped
determine the best location at 140
East Ave., shifting motorized
watercrafts away from those
without motors. Several grants
supported the project. The
Clermont Boat Ramp's completion
was another milestone in the city's
Downtown -Waterfront Master Plan.
www. ClermontFL.goy/MasterPlan
CITY OF CLERMONT
FLORIDA
Comprehensive Annual Financial Report
For The Year Ended September 30, 2020
C LEF (ON..Amlww� mm,00,T
Choice of Champions'
Prepared by:
Finance Department
City of Clermont, Clermont, Florida
Table of Contents
Page
Introductory Section
Letter of Transmittal 3
GFOA Certificate ofAchievementfor Excellence in Financial Reporting 8
Organization Chart 9
List of Elected and Appointed Officials 10
Financial Section
Independent Auditor's Report
13
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
29
Statement of Activities
30
Fund -Financial Statements:
Balance Sheet- Governmental Funds
31
Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds
32
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
33
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
General Fund
34
Statement of Revenues, Expenditures, and Cahnges in Fund Balance - Budget and Actual -
Infrastructure Special Revenue Fund
37
StatementofNetPosition - Proprietary Funds
38
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds
41
Statement of Cash Flows - Proprietary Funds
42
Statementof Fiduciary Net Position - Fiduciary Funds
44
Statementof Changes in Fiduciary Net Position - Fiduciary Funds
45
Notes to the Financial Statements
49
Required Supplementary Information:
Schedule of Changes in Net OPEB Liability and Related Ratios
85
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
86
Schedule of Changes in Net Pension Liability and Related Ratios - Police
87
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
88
Schedule of Contributions and Investment Returns - General Employees
89
Schedule of Contributions and Investment Returns - Police
90
Schedule of Contributions and Investrnent Returns - Fire
91
Combining and Individual Fund Statements and Schedules:
Major Governmental Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Capital Projects Fund
96
Nonmajor Governmental Funds
Combining Balance Sheet- Other Governmental Funds
98
Combining Statementof Revenues, Expenditures, and Changes in Fund Balance - Other
Governmental Funds
100
City of Clermont, Clermont, Florida
Table of Contents
Page
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Recreation Impact Fee Special Revenue Fund 102
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Police Impact Fee Special Revenue Fund 103
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Fire Impact Fee Special Revenue Fund 104
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Building Services Special Revenue Fund 105
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Fire Inspection Special Revenue Fund 106
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Community Redevelopment Special Revenue Fund 107
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Cemetery Special Revenue Fund 108
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Debt Service Fund 109
Fiduciary Funds
Combining Statement of Fiduciary Net Position - Fiduciary Funds 111
Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds 112
Statistical Section
Financial Trends:
Net Position by Component
116
Changes in Net Position
118
Fund Balance - Governmental Funds
122
Changes in Fund Balances - Governmental Funds
124
Revenue Capacity:
Governmental Activities Tax Revenues by Source
126
Assessed Value and Estimated Actual Value of Taxable Property
127
Property Tax Rates - Direct and Overlapping Governments
128
Principal Property Taxpayers
129
Property Tax Levies and Collections
130
Debt Capacity:
Ratios of Outstanding Debt by Type
131
Direct and Overlapping Governmental Activities by Debt
132
Pledged -Revenue Coverage
133
Demographic and Economic Information:
Demographic and Economic Statistics
138
Principal Employers
139
Principal Water Customers
140
Principal Sewer Customers
141
Operating Information:
Full-time Equivalent City Government Employees by Function
142
Operating Indicators by Function
144
Capital Asset Statistics by Function
146
City of Clermont, Clermont, Florida
Table of Contents
Page
Other Reports
Independent Auditor's Reporton Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 151
Independent Auditor's Reporton Compliance for Each Major Federal Proram and Reporton
Internal Control Over Compliance in Accordance with the Uniform Guidance
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Management Letter
Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida
Statutes
153
155
156
157
158
160
INTRODUCTORY SECTION
Page11
Page 12
BRIAN M. BULTHUIS
CITY MANAGER
DER
C WON T
Choice of Champions 352-241-7358
BBulthuis@Clermontfl.org
December 20, 2021
Honorable Mayor Tim Murry,
Council Members and Citizens of the City of Clermont, Florida
Dear Mayor Murry, Council Members and the Citizens of the City of Clermont, Florida:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Clermont,
Florida, for the fiscal year ended September 30, 2020. State law requires that every general-purpose
local government publish each fiscal year a complete set of audited financial statements. This report is
published to fulfill that requirement for the fiscal year ended September 30, 2020.
Management assumes full responsibility for the completeness and reliability of the information presented
in this report. To provide a reasonable basis for making these representations, management of the City
of Clermont has established a comprehensive internal control framework that is designed both to protect
the government's assets from loss, theft or misuse and to compile sufficient reliable information for the
preparation of the City of Clermont's financial statements in conformity with Generally Accepted
Accounting Principles in the United States of America (GAAP). Because the cost of internal controls
should not exceed anticipated benefits, the City of Clermont's comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Clermont's financial statements have been audited by McDirmit Davis & Company, LLC; a
firm of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of Clermont for the fiscal year ended
September 30, 2020 are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditor concluded, based upon the audit, that there
was a reasonable basis for rendering an unmodified opinion that the City of Clermont's financial
statements for the fiscal year ended September 30, 2020 are fairly presented in conformity with GAAP.
The independent auditor's report is presented as the first component of the financial section of this
report.
Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and
provides narrative introduction, overview and analysis of the basic financial statements. The MD&A
provides "financial highlights" and interprets the financial reports by analyzing trends and by explaining
changes, fluctuations and variances in the financial data. In addition, the MD&A is intended to disclose
685 W. Montrose Street Clermont, FL 34711 www.ClermontFL.gov
Page 13
any known significant events or decisions that affect the financial condition of the City. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it.
Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land area of 19.1
square miles and a population of approximately 44,301. The City is located in south Lake County,
approximately 22 miles west of the City of Orlando and about 25 miles northwest of Walt Disney World.
Clermont, known as "Choice of Champions"', is truly the crossroads of Florida, at the intersection of
State Road 50, which runs east and west across the state, and U.S. Highway 27, which runs north and
south through the center of the state.
Clermont is on a chain of 15 lakes connected by the winding Palatlakaha River in the Ocklawaha Basin
of tributaries of the St. Johns River, the only river system in the United States that flows north. The lakes
offer residents the opportunity for excellent fishing, boating, swimming and other water sports, including
competitive rowing, skiing and wakeboarding offered by world -class instructional schools. The City of
Clermont is known for its scenic beauty, relaxed lifestyle, recreational facilities and temperate climate.
Residents have a wide variety of housing and property -ownership opportunities, including lakefront and
lake -access property, golf -course communities, homes in existing neighborhoods, residential retirement
communities and new subdivisions.
The City of Clermont provides a full range of services as directed by its charter. These include police and
fire protection, street and sidewalk maintenance, planning and development, code enforcement,
recreational facilities and programs, cemetery and general administrative functions. The City also
provides potable water, wastewater collection and treatment, reclaimed water production and distribution,
stormwater treatment, solid waste collection and recycling services.
The City operates according to a Council/Manager form of government, with an appointed City Manager,
four elected City Council members and an elected Mayor. The governing body has legislative
responsibilities, including setting policy, passing ordinances, adopting the budget, appointing committees
and hiring the City Manager. The City Manager is responsible for carrying out the policies and
ordinances of the governing body, overseeing the day-to-day operations of the government and hiring
the directors of the various departments.
The annual budget serves as the foundation for the City of Clermont's financial planning and control. All
departments of the City of Clermont are required to submit requests for appropriations to the City
Manager. The City Manager then uses these requests as the starting point for developing a proposed
budget. The City Manager then presents this proposed budget to the Council for review. The City Council
is required to hold public hearings on the proposed budget and to adopt a final budget by no later than
September 30, the close of the City of Clermont's fiscal year. The appropriated budget is prepared by
fund (e.g. general fund), and department (e.g. police department). The City Manager may make transfers
of appropriations within departments; however, any revisions that alter the total appropriations of a
department must be approved by City Council. Original and final amended budget -to -actual comparisons
are provided in this report for each individual governmental fund.
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of Clermont operates.
685 W. Montrose Street Clermont, FL 34711 www.ClermontFL.gov
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Local Economy
The City of Clermont is essentially residential in character and its economy is centered in retail, real
estate, personal services and healthcare. During the last 5 years, Clermont's population has increased
by 9,634 residents or 27.79%. Clermont's economic factors for FY 2020 indicated impacts from the
pandemic in both unemployment and per capita personal income levels. The per capita personal income
levels have increased $598 or 2.02% over the last 5 years, however there was a 6.4% decline in this
area compared to 2019. The City's unemployment rate also has increased from 4.4% to 6.7% over the
last 5 years, this rate continues to be below the county, state and national averages. Both of these areas
have been impacted by the pandemic. Educational institutions in Clermont, such as Lake -Sumter State
College, St. Leo University and the University of Central Florida, assist in supplying a skilled labor force.
One of the highlighted areas of change has been the increase in property values; this year had a 9.33%
increase in taxable property values. Primarily due to this increase in property values, Clermont's property
tax-millage rate of 4.2061 continues to be among the lowest of other comparable cities in the Central
Florida region.
The cost of living for the region is below the national average. There is no personal income tax, either
locally or statewide. Sales tax, currently at 7%, is not charged on food or medicine. One cent of the sales
tax charged within the county is limited to $50 per transaction (1% of $5,000). As discussed in the
MD&A, this additional penny sales tax must be used for infrastructure including roads, buildings, land,
land improvements and certain equipment.
Long-term Financial Planning
The City uses an extensive water and sewer master plan to manage growth in the water and sewer utility
systems. The plan outlines water and sewer line size requirements for planned development with rough
cost estimates. The plan also has benchmarks for plant expansions and additional well requirements.
The Clermont City Council and management, through careful short- and long-range planning and sound
management practices, are committed to budgeting and managing all resources in the most cost-
effective manner. The City adopts a Five -Year Capital Plan as part of the annual budget process. The
Capital Plan is a multi -year prioritized schedule that identifies future capital outlay by the year it is
intended to be purchased or commenced, the amount to be spent per year, and the funding source.
Relevant Financial Policies
The City regularly reviews revenues and expenditures throughout the fiscal year. Quarterly budget
reports are prepared and presented to the City Council. The reports show budget -to -actual for the city's
top 10 revenues, total fund revenues, total fund expenditures, departmental expenditures and various
department performance indicators. Through this process, if actual revenues are expected to fall short of
the budgeted amount, expenditures are reduced to ensure that a shortage of funds or a significant use of
fund balance does not occur.
685 W. Montrose Street Clermont, FL 34711 www.ClermontFL.gov
Page 15
Major Initiatives
The completion of several capital projects included in the award -winning Downtown Waterfront Master
Plan continues to be the major emphasis of the City. The Master Plan offers an exciting view of the future
of Clermont and how to protect the very charms that have drawn hundreds of thousands to this
internationally recognized city that is one of the nation's top places to live, as well as a training ground for
the world's elite athletes. The following capital projects are included in the Master Plan and are expected
to be completed within the next two years. The listed projects below are being funded primarily from
several grants and a loan. It is important to note that no General Fund reserves are being used to fund
the construction of these projects.
The Downtown Waterfront District area includes Montrose Street, Minneola Street and
Osceola Street between 7th and 8t" streets. The proposed improvements consist of
streetscapes, landscaping, bathrooms, lighting, upgrades for event lighting and music, banners
and beautification. A focal point will be created at City Hall Park to anchor downtown visitors,
creating a destination and meeting point in the heart of downtown Clermont. In addition, the
city plans to demarcate the halfway point of the Coast -to -Coast Trail. Phase one of the project
is under construction with expected completion in 2021. Phase two design is underway with
construction starting in 2021 and phase three design beginning shortly after. The total project
is anticipated to cost approximately $14 million.
• The Public Services Facility Relocation project involves the expansion and relocation of the
existing antiquated facility. The new facility is proposed to be relocated to the Hancock Road
corridor, an area that will allow for a larger, more centralized Public Services Facility. The land
acquisition has been completed and is currently in the final design phase with bidding and
construction to follow. The project is anticipated to cost approximately $12 million.
In addition to the Master Plan projects there is a major Utility Projects underway.
The Wastewater Treatment Facility Expansion project is required in order to meet the
increased demand generated within the service area. The project is currently in the design
phase to take the facility from the existing permitted capacity of 4 MGD to 6.5 MGD with the
design portion anticipated to be complete in early 2022 followed by construction starting during
the summer of 2022. This project will not only allow the facility to maintain regulatory
compliance, it will also allow the City to continue the history of responsibly utilizing water
resources by expanding the volume of effluent that can be produced for public access reuse.
This project has an estimated cost of $32 million.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Clermont for its
comprehensive annual financial report for the fiscal year ended September 30, 2019. This was the 32nd
consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
685 W. Montrose Street Clermont, FL 34711 www.ClermontFL.gov
Page16
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Credit must be given to the Mayor and the City Council for their support in maintaining the highest
standards of professionalism in the management of the City of Clermont's finances. The preparation of
this report would not have been possible without the efficient and dedicated services of the staff in the
City Manager's Office and Finance Department. We would like to express our appreciation to all
members of these departments who assisted and contributed to the preparation of this report.
Respectfully submitted,
Brian M. Bulthuis
City Manager
NA6 r,/
Pamela M. Brosonski
Finance Director
685 W. Montrose Street i Clermont, FL 34711 www.ClermontFL.gov
Page17
Government Finance Officers Association
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, 2019
Executive Director/CEO
Page18
Citizens
Clermont
City Council
City
Attorney
City Manager
Economic
Development
Building
City Cl
Finance
re
Human
esourcE
Committees
Parks and
Recreation
Planning an
Developmei
Police
Public
Service
Public
Information
Information
Technology
Procuremen
k Services
City of Clermont, Florida
List of Elected and Appointed Officials
For the Fiscal Year Ended September 30, 2020
Elected Officials
Gail L. Ash
Mayor
Diane Travis
Mayor Pro- Tem
Timothy Bates
Council Member
Appointed Officials
Darren S. Gray
City Manager
Susan Dauderis
Assistant City Manager
Dan Mantzaris
City Attorney
Tracy Ackroyd Howe
City Clerk
Kathryn Deen
Communications Director
Lisa Widican
Building Services Director
Curt Henschel
Planning & Development Services Director
Pam Bronsonski
Finance Director
Jim Purvis
Council Member
Vacant
Council Member
David Ezell
Fire Chief
Nadine Ohlinger
Human Resources Director
Don Dennis
Information Technology Director
Scott Davidoff
Parks and Recreation Director
Charles Broadway
Police Chief
Stoney Brunson
Public Services Director
Freddy Suarez
Purchasing Director
Page110
FINANCIAL SECTION
Page111
Page112
McDirmit Davis
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of and for the year ended September 30,
2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in
the table of contents.
Management's Responsibility for the Financial Statements
City of Clermont's management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of
Clermont, as of September 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof and
the respective budgetary comparison for the General Fund, and Infrastructure Special Revenue Fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
the trusted partner
Page113
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis,
the pension and other postemployment benefits disclosures on page 17 through 26 and 85 through 91 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Clermont's
basic financial statements. The introductory section, combining and individual fund financial statements and schedules, statistical
section and the Schedule of Expenditures of Federal Awards (the Schedule) as required by the audit requirements of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a required part of the financial
statements.
The combining and individual nonmajor fund financial statements and schedules, and the Schedule are the responsibility of
management and were derived from and related directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated December 20, 2021 on our consideration of
City of Clermont's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City of Clermont's internal control over financial reporting and compliance.
Orlando, FL
December 20, 2021
Page114
MANAGEMENT'S DISCUSSION AND
ANALYSIS
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Page116
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
As management of the City of Clermont, Florida we offer readers of the City of Clermont's (the City) financial statements this narrative
overview and analysis of the financial activities of the City of Clermont for the fiscal year ended September 30, 2020. We encourage
readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found on pages 3 through 7 of this report.
Financial Highlights
• The City of Clermont's assets and deferred outflows of resources exceeded its liabilities and deferred inflows at September
30, 2020 by $201,631,825 (net position). Of this amount, $52,602,444 (unrestricted net position) may be used to meet the
City's ongoing obligations to citizens and creditors.
• The City's total net position increased by $12,177,327 (or 6%) during fiscal year 2020 primarily due to an increase in total
revenues, specifically, charges for services, property taxes, as well as an increase in capital assets.
• At September 30, 2020, the City of Clermont's governmental funds reported combined ending fund balances of $39,397,411
an increase of $2,625,885 from the previous fiscal year. Of this amount $7,859,532 (unassigned fund balance) is available
for spending at the government's discretion.
• The General Fund, the City's primary operating fund, reported an unassigned fund balance of $7,859,532, which represents
25.1 % of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Clermont's basic financial statements. The City's
basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements,
and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of the City of Clermont's financial
position, in a manner similar to a private -sector business. They include a Statement of Net Position and a Statement of Activities. These
statements appear on pages 29 and 30 of the report.
The Statement of Net Position presents information on all of the City's assets and liabilities and deferred inflows/outflows of resources,
with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether
the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Clermont that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business -type activities). The governmental activities of the City of Clermont include general
government, public safety, physical environment, transportation, economic environment, and culture and recreation. The business -type
activities of the City of Clermont include water, sewer, sanitation, and stormwater utilities.
The government -wide financial statements include only the City of Clermont itself (known as the primary government) and one blended
component unit (The City of Clermont Community Redevelopment Trust Fund).
Fund financial statements.
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities
or objectives. The City of Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements. All of the funds of the City of Clermont can be divided into three categories: governmental funds,
proprietary funds and fiduciary funds.
Page117
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide
financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the City's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Clermont maintains eleven individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund,
Capital Projects Fund, and Infrastructure Fund, which are considered to be major funds. Data from the other eight governmental funds
are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in
the form of combining statements elsewhere in this report.
The City of Clermont adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison statements have
been provided for the General Fund (pages 34 - 35), and the Infrastructure Fund (page 37) to demonstrate compliance with budgets.
Other major and nonmajor funds comparisons can be found beginning on page 96.
The basic governmental fund financial statements can be found on pages 31 - 37 of this report.
Proprietary Funds
The City of Clermont maintains two types of proprietary funds: enterprise and internal service, which can be found on pages 38 - 43 of
this report.
Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Clermont uses enterprise funds to account for water, sewer, sanitation and stormwater utilities. Internal service
funds are an accounting tool used to accumulate and allocate costs internally among various functions. The City utilizes an internal
service fund for its health insurance. Because services accounted for in the internal service fund predominately benefit governmental
rather than business -type functions, it has been included within the governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary
fund financial statements provide separate information for water, sewer, sanitation, and stormwater which are all considered to be major
funds.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected
in the government -wide financial statements because the resources of those funds are not available to support the City of Clermont's
own programs. The accounting used for fiduciary funds is much like that used for the proprietary funds.
The basic fiduciary fund financial statements can be found on pages 44 - 45 of this report.
Notes to the Financial Statements.
The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund
financial statements. The notes to financial statements can be found on pages 49 - 81 of this report.
Other Information.
The combining statements referred to earlier in connection with other governmental and proprietary funds are presented immediately
following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 96 -
112 of this report.
Page118
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Government -Wide Financial Analysis
The following is a summary of the City's net position for governmental and business -type activities for the current year as compared to
the prior year. For more detail see the Statement of Net Position.
Net Position
Governmental Activities
Business -type Activities
Total
2019-20
2018-19
2019.20
2018-19
2019-20
2018.19
Assets:
Current and other assets
$48,259,851
$43,859,992
$ 59,233,295
$ 54,296,455
$107,493,146
$ 98,156,447
Capital assets
73,844,788
72,264,370
82,418,678
81,276,454
156,263,466
153,540,824
Total assets
122,104,639
116,124,362
141,651,973
135,572,909
263,756,612
251,697,271
Deferred Outflows of Resources:
Deferred outflow of pension and OPEB earnings
5,838,788
7,210,014
544,970
643,035
6,383,758
7,853,049
Deferred charge of refunding
-
-
806,851
951,891
806,851
951,891
Total deferred outflows of resources
5,838,788
7,210,014
1,351,821
1,594,926
7,190,609
8,804,940
Liabilities:
Long-term liabilities outstanding
40,889,219
42,323,904
19,750,335
20,714,765
60,639,554
63,038,669
Other liabilities
3,469,782
3,777,447
1,927,617
1,586,464
5,397,399
5,363,911
Total liabilities
44,359,001
46,101,351
21,677,952
22,301,229
66,036,953
68,402,580
Deferred Inflow of Resources:
Deferred inflow of pension and OPEB earnings
3,185,495
2,531,261
92,948
113,872
3,278,443
2,645,133
Net investment in capital assets
44,045,257
40,317,634
68,309,917
66,103,888
112,355,174
106,421,522
Restricted
12,479,307
9,588,877
24,194,900
20,362,482
36,674,207
29,951,359
Unrestricted
23,874,367
24,795,253
28,728,077
28,286,364
52,602,444
53,081,617
Total net position $ 80,398,931 $ 74,701,764 $121,232,894 $114,752,734 $ 201,631,825 $189,454,498
The City's total net position at September 30, 2020 was $201,631,825.Of the City's total net position $112,355,174 (55.7%) reflects its
investment in capital assets (e.g., land, buildings, improvements, infrastructure and equipment) less any related debt used to acquire
those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are
not available for future spending. Although the City of Clermont's investment in its capital assets is reported net of related debt, it should
be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
An additional portion of the City's total net position, $36,674,207 (18.2%) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of the City's total net position, $52,602,444 (26.1%) is unrestricted. These assets
may be used at the City's discretion in meeting its ongoing obligations to citizens and creditors.
The City's net position increased by $12,177,327 during the current fiscal year. Major components of this increase are discussed in the
Governmental and Business -Type Activities sections to follow. Restricted reserves represent the accumulation of impact fee funds for
upcoming and ongoing capital projects.
The following is a summary of the City's governmental and business -type activities for fiscal year 2019-20, including revenues and
expenses, with a comparison to the prior year. For more detail see the Statement of Activities.
Page119
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Changes in Net Position
Governmental Activities
Business -type Activities
Total
2019-20
2018-19
2019.20
2018.19
2019-20
2018-19
Revenues:
Program revenues -
Charges forservices
$ 7,319,562
$ 6,984,137
$ 20,461,143
$ 18,719,668
$ 27,780,705
$ 25,703,805
Operating grants and contributions
3,307,146
2,061,400
583
47,346
3,307,729
2,108,746
Capital grants and contributions
625,000
625,000
6,574,550
4,691,099
7,199,550
5,316,099
General revenues -
Property Taxes
13,089,628
11,944,977
-
13,089,628
11,944,977
Business Taxes
161,849
157,103
161,849
157,103
Franchise Fees
3,202,523
3,142,014
3,202,523
3,142,014
Utility Taxes
4,201,714
3,872,099
4,201,714
3,872,099
Intergovernmental
8,403,161
8,138,703
8,403,161
8,138,703
Investment income andmisoellaneous
1,255,270
1,441,891
953,526
1,294,462
2,208,796
2,736,353
Gain on sale of capital assets
193,446
28,679
150,266
28,679
343,712
Total revenues
41,565,853
38,560,770
28,018,481
24,902,841
69,584,334
63,463,611
Expenses:
General government
5,677,795
5,023,225
5,677,795
5,023,225
Public safety
22,732,773
22,103,605
22,732,773
22,103,605
Physical environment
2,470,157
863,346
2,470,157
863,346
Transportation
1,843,193
2,387,307
1,843,193
2,387,307
Economic environment
846,818
532,152
846,818
532,152
Culture and recreation
3,722,518
5,954,052
3,722,518
5,954,052
Interest on long-term debt
752,672
835,497
752,672
835,497
Water
6,424,688
6,215,346
6,424,688
6,215,346
Sewer
7,741,759
7,372,654
7,741,759
7,372,654
Sanitation
3,293,726
3,026,816
3,293,726
3,026,816
Stormwater
1,900,908
1,613,761
1,900,908
1,613,761
Total expenses
38,045,926
37,699,184
19,361,081
18,228,577
57,407,007
55,927,761
Increase (Decrease) in Net Position Before Transfers
3,519,927
861,586
8,657,400
6,674,264
12,177,327
7,535,850
Transfers
2,177,240
2,106,377
(2,177,240)
(2,106,377)
Increase in Net Position
5,697,167
2,967,963
6,480,160
4,567,887
12,177,327
7,535,850
Net Position - Beginning
74,701,764
71,733,801
114,752,734
110,184,847
189,454,498
181,918,648
NetPosition- Ending
$80,398,931
$74,701,764
$121,232,894
$114,752,734
$201,631,825
$189,454,498
Governmental Activities
Governmental activities increased the City of Clermont's net position by $5,697,167. This change is primarily due to increased general
government revenues, as well as a decrease in culture and recreation expenses.
The following graph is a comparison of program revenues and program expenses for all governmental activities. This chart is intended
to give the reader an idea of the degree to which governmental activities are self-supporting.
Page120
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Expenses and Program Revenues - Governmental Activities
General government Public Safety Transpertation/ppbll, Works &recreation Physic,,,environmeInterest nt and Other n 1 ong term debt
The following pie chart illustrates the composition of governmental activities revenue and its percent in relation to total governmental
activities revenues.
Revenues by Source - Governmental Activities
■ Intergovernmental ■ Charges for services Operating grants and contributions
■ Investment income and miscellaneous ■ Other taxes Capital grants and contributions
Property taxes
Property taxes, 31
Capital grants and
contributions, 1.5%
Other taxes, 18.2
Intergovernmental, 20.2%
iarges for services,
17.6 %
Investment income and Operating grants and
miscellaneous, 3.0% contributions, 8.0%
Business -Type Activities
Business -type activities increased the City of Clermont's net position by $6,480,160. This change is primarily due to increased revenue
from services, and capital contributions of water and sewer impact fees paid by developers.
Page121
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
The following graph is a comparison of program revenues and program expenses for all business -type activities. This chart is intended
to give the reader an idea of the degree to which business -type activities are self-supporting.
$14, 000, 000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Expenses and Program Revenues - Business Type Activities
Water Sewer Sanitation Stormwater
The following pie chart illustrates the composition of business -type activities revenue and its percent in relation to total business -type
activities revenues.
Revenues by Source - Business Activities
■ Investment income and miscellaneous ■ Operating grants and contributions
❑ Charges for Services ■ Capital Grants and Contributions
Capital Grants and
)utions, 23.5%
Investment income and
miscellaneous , 3.4%
Operating grants and
contributions, 0.0%
Charges foi
73. ,u
Page122
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Financial Analysis of the City's Funds
As noted earlier, the City of Clermont uses fund accounting to ensure and demonstrate compliance with finance -related
requirements.
Governmental Funds.
The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable
resources. Such information is useful in assessing the City of Clermont's financing requirements. In particular, unassigned fund
balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of September 30, 2020, the City of Clermont's governmental funds reported combined ending fund balances of $39,397,411 an
increase of $2,625,885 in comparison with the prior year. This increase is primarily due to receiving grant CARES funds from Lake
County as a result of the pandemic that are part of a spending plan for 2021 and additional collection of impact fees tied to new
development in the City. Of the governmental funds combined ending fund balances, $7,859,532 (20%) represents unassigned
fund balance, which is available for spending at the City's discretion. An additional $18,702,447 (assigned fund balance) has been
set aside for planned master plan project expenditures and the use of CARES funds in 2021. Restricted fund balances totaling
over $12.4 million include funds required for debt service, as well as funds collected for specific purposes such as impact fees and
community redevelopment. The remainder of fund balance is nonspendable ($365,331) to indicate that it is not available for
spending because it has already been committed for prepaids and inventories.
The General Fund is the chief operating fund of the City of Clermont. As of September 30, 2020, the fund balance in the General
Fund was $11,801,460 an increase of $3,113,383 primarily from an increase in revenues; intergovernmental, property taxes and
utility taxes all surpassed the 2019 amounts. The change in fund balance was more than the anticipated amount of the original
budget by $3,113,383 and $3,526,936 more than the revised budget. Revenues were more than budgeted by $1,994,896, due to
increases in intergovernmental, this was due to the CARES Act grant funds received from Lake County to assist with pandemic
related expenses.. Departmental expenditures came in less than anticipated resulting in no use of reserves in 2020. Of the total
fund balance in the General Fund, $7,859,532 (66.6%) is unassigned fund balance. As a measure of the General Fund's liquidity,
it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents 25.1 % of total General Fund expenditures, while total fund balance represents 37.7% of that same amount.
The City has a Capital Projects Fund that is considered a major fund under criteria set forth by GASB Statement No. 34. This fund
is used to account for the acquisition of capital assets or construction of major capital projects not being financed by proprietary
funds. Funds have been accumulated so projects can be completed on a pay-as-you-go basis. The fund balance in this fund
decreased by $3,224,396 in fiscal year 2020, primarily due to spending of proceeds from the Master Plan Capital Projects Revenue
Note.
The City has an Infrastructure Fund that is considered a major fund under criteria set forth by GASB Statement No. 34. This fund
was established to account for the proceeds of the Local Government Infrastructure Surtax. The proceeds and interest accrued
thereto, by law are only to be used to finance, plan and construct infrastructure. The fund balance in this fund increased by
$1,129,144 in fiscal year 2020 primarily due to the delay in road resurfacing projects and acquisition of vehicles and other
equipment due to the pandemic.
The remainder of the change of $1,607,754 to the governmental fund balance was from the non -major governmental funds.
Recreation, Police and Fire Impact Fee fund balances combined for an increase of $1,639,176 in fiscal year 2020 primarily due to
the collection of impact fees on new development within the City. The Building Services fund balance decreased $111,553 due to
revenues exceeding expenditures. The fund balances in the remaining nonmajor funds increased a total of $80,131 due to an
increase in both the cemetery and debt service funds.
Page123
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Proprietary Funds
Proprietary funds are used to account for operations (a) that are financed and operated in a manner similar to private business
enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate
for capital maintenance, public policy, management control, accountability, or other purposes. The City's major proprietary funds
are water, sewer, sanitation and stormwater.
The Water Fund accounts for the provision of potable water and reclaimed irrigation services to City and non -City residents. All
activities necessary to the provision of these services are accounted for in this fund, including, but not limited to administration,
plant and line maintenance. As of September 30, 2020, the City of Clermont's Water Fund reported total net position of
$44,467,739, an increase of $2,162,690 in comparison with the prior year. This increase in net position was due to operating
income and non -operating incomes as well as the capital contributions of water impact fees on new development in the City.
The Sewer Fund accounts for the provision of sewer services to City and non -City residents. All activities necessary to the provision
of these services are accounted for in this fund, including, but not limited to administration, plant and line maintenance. As of
September 30, 2020, the City of Clermont's Sewer Fund reported total net position of $63,128,458, an increase of $4,255,500 in
comparison with the prior year. This increase in net position was primarily due to the capital contributions of sewer impact fees on
new development in the City.
The Sanitation Fund accounts for the provision of garbage and trash collection, recycling, and composting services to City
residents. All activities necessary to the provision of these services are accounted for in this fund. As of September 30, 2020, the
City of Clermont's Sanitation Fund reported total net position of $6,303,135, an increase of $430,943 in comparison with the prior
year. This increase in net position is due to net operating income.
The Stormwater Fund accounts for the management of the City's stormwater drainage system. All activities necessary to the
provision of these services are accounted for in this fund. As of September 30, 2020, the City of Clermont's Stormwater Fund
reported total net position of $7,382,158, a decrease of $147,108 in comparison with the prior year. The decrease in net position
is primarily due to increased costs for personnel and other operating expenditures.
General Fund Budgetary Highlights
During the year, there was a $779,136 increase in appropriations between the original and final amended budget. Significant
components of the increase are as follows:
• $252,083 Economic Development's Wellness Way consulting services
• $185,230 Police officers' and sergeants' MOU wage agreement
• $160,143 various departments' revised pay and classification schedule changes
• $71,511 Police forfeiture expenditures
• $42,730 Fire purchase new vehicle for Fire Chief
In addition, General Fund budgeted revenues increased by $365,588 between the original and final budget. Significant components
of the increase are as follows:
• $100,833 partial reimbursements from Lake County for Wellness Way
$170,331 increased State Revenue Sharing estimates
• $65,190 increase in Police forfeiture revenues as related to the above mentioned appropriation increase.
Considering the above noted increases in General Fund budgeted appropriations, actual expenditures were less than budgeted
by $1,255,619.
Page124
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Capital Assets
The following is a summary of the City of Clermont's capital assets, net of depreciation for governmental and business -type
activities for the current year with a comparison to the prior year. Additional information on the City of Clermont's capital assets
can be found in Note 6 of this report.
Land
Buildings
Infrastructure
Machinery and Equipmen
Intangibles
Construction in Progress
Total
Capital Assets
(net of depreciation)
Governmental Activities Business -type Activities
2019-20 2018-19 2019-20 2018-19
$ 25,345,300 $ 25,308,076
19,052,904 19,593,711
17,444,678 15,556,191
t 6,340,602 7,318,348
92,403 51,557
5,568,901 4,436,487
$ 1,511,807 $ 1,511,807
873,451 911,058
67,425,101 70,741,991
5,166,510 4,245,300
188,435 228,334
7,253,374 3,637,964
Total
2019-20 2018-19
$ 26,857,107 $ 26,819,883
19,926,355 20,504,769
84,869,779 86,298,182
11,507,112 11,563,648
280,838 279,891
12,822,275 8,074,451
$ 73,844,788 $ 72,264,370 $ 82,418,678 $ 81,276,454 $156,263,466 $153,540,824
The City of Clermont's investment in capital assets for its governmental and business -type activities as of September 30, 2020,
amounts to $156,263,466 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements/infrastructure, machinery and equipment and intangibles. The total change in the City's investment in capital assets
for the current fiscal year was $2,722,642. Following are the significant capital asset events that occurred during the current fiscal
year:
• Completion of Boat Ramp/Restrooms, $499,835 was added and prior year's Construction in Progress in the amount
of $2,327,349 was moved to Infrastructure for a total project cost of $2,827,184.
• Completion of Kehlor Recreation Center, $85,414 was added and prior year's Construction in Progress in the amount
of $396,659 was moved to Building for a total project cost of $482,073.
• Completion of Boat Ramp Water, Sewer and Stormwater Systems, $80,017 was added and prior year's Construction
in Progress in the amount of $155,277 was moved to Infrastructure for a total project cost of $235,294.
• Completion of Public Wi-Fi project with prior year's Construction in Progress moved to Infrastructure for a total project
cost of $217,699.
• Completion of Heritage Hills and Barbados Loop Sewer Force Mains, $139,267 was added and prior year's
Construction in Progress in the amount of $226,730 was moved to Infrastructure for a total project cost of $365,997.
• Completion of Sewer Filters Project, $177,835 was added and prior year's Construction in Progress in the amount of
$238,553 was moved to Infrastructure for a total project cost of $416,388.
• Purchase of 3 Sanitation vehicles for a total of $893,137.
• Purchase of 3 Sewer portable generator/trailers for $350,112.
• Purchase of 5 vehicles for a total of $158,789 (2 for Fire).
• Purchase of 2 Sewer diesel generators for $127,661.
• Purchase of Sewer SCADA System of $97,530.
• Purchase 58 laptops/desktops/tough-books for $91,782 (13 for Fire and 10 for Police)
• Upgrading Sewer radio system costing $75,000.
• Purchase a Sewer Genie Boom Lift for $51,000.
Page125
City of Clermont, Clermont, Florida
Management's Discussion and Analysis
Construction in progress as of September 30, 2020 includes the following projects: City Fiber Optic Network,
Boathouse Improvements, Fire Hawk Boathouse, Fire Station #2 expansion, Meet us in the Middle, Streetscapes &
Montrose Street Improvements, Artwalk, Lake Hiawatha Pier Replacement, Public Works Hancock Facility, John's
Lake Water Main Replacement, West Side Water Loop, Sunburst Barrier Wall, CDBG Disston to School, Asset
Management Software, Utility Extensions (South Sector, 12th St & W Desoto, Juniata & West Street), John's Lake
Rd Reuse, Utility Master Plan Updates, Manhole & Lift Station Upgrades and Pump Replacements, Security
Upgrades, SCADA, Lower Floridan Well, Rib Rerate and Stormwater Master Plan for Lake Minnehaha.
Debt Administration
The following is a summary of the City's long-term debt for governmental and business -type activity for the current year with a
comparison to the prior year. Additional information on long-term debt can be found in Note 8 of this report.
Outstanding Debt
Governmental Activities
2019-20 2018-19
Revenue bonds payable $ - $ -
Notes payable 29,045,267 31,108,991
Capital leases 754,264 837,745
Business -type Activities
2019-20 2018-19
$ 10,634,000 $ 11,462,000
5,620,934 5,979,845
Total
2019-20
2018-19
$ 10,634,000
$ 11,462,000
34,666,201
37,088,836
754,264
837,745
Total $ 29,799,531 $ 31,946,736 $ 16,254,934 $ 17,441,845 $ 46,054,465 $ 49,388,581
As of September 30, 2020, total outstanding debt was $46,054,465, which includes both revenue bonds payable and notes
payable. The outstanding debt amount decreased $3,334,116 over the previous year.
Next Year's Budgets and Rates
The fiscal year 2021 budget was approved and required the use of $1,880,139 in reserves to balance the General Fund budget
while maintaining the same property tax millage for the sixth consecutive year. Clermont's 4.2601 millage continues to be one of
the lowest of comparable cities in the region. Property values continued to increase in fiscal year 2021 in the amount of 10.18%
due to commercial and residential growth in the City.
Pursuant to a utility rate study performed by a private consulting firm, the Clermont City Council adopted a resolution in December
2017 that provided for an increase to stormwater rates in January 2018. This resolution also provided for inflation based increases
to the water, sewer, stormwater, and sanitation rates every October 1st, starting October 1, 2018. The increase is based on the
Florida Public Service Commission Annual Deflator Index and are necessary, primarily to provide funding for the future planned
capital projects. The 2021 budget includes these rate increases in the Proprietary Funds.
Requests for Information
This financial report is designed to provide a general overview of the City of Clermont's finances for all those with an interest in the
government's finances. Questions concerning any of the information should be addressed to the office of the Finance Director,
City of Clermont, P.O. Box 120219, Clermont, Florida 34712.
Page126
BASIC FINANCIAL STATEMENTS
Page127
Page128
City of Clermont, Florida
Statement of Net Position
September 30, 2020
Primary Government
Governmental
Business -type
Activities
Activities
Total
Assets:
Cash and cash equivalents
$ 9,930,142 $
20,483,484 $
30,413,626
Investments
18,338,519
19,551,624
37,890,143
Receivables, net
1,014,908
996,786
2,011,694
Inventories
14,430
7,888
22,318
Due from other governments
2,721,398
-
2,721,398
Internal balances
(348,531)
348,531
-
Prepaid costs
355,504
180,963
536,467
Restricted assets:
Cash and cash equivalents
-
1,847,149
1,847,149
Investments
11,819,727
15,761,047
27,580,774
Interest receivable
27,592
55,823
83,415
Net pension asset
4,386,162
-
4,386,162
Capital assets not being depreciated
30,914,201
8,765,181
39,679,382
Capital assets being depreciated, net of accumulated depreciation
42,930,587
73,653,497
116,584,084
Total assets
122,104,639
141,651,973
263,756,612
Deferred Outflows of Resources:
Deferred outflow of pension earnings
4,048,078
-
4,048,078
Deferred outflow related to OPEB
1,790,710
544,970
2,335,680
Deferred charge on refunding
-
806,851
806,851
Total deferred outflows of resources
5,838,788
1,351,821
7,190,609
Liabilities:
Accounts payable and accrued expenses
3,454,464
1,927,617
5,382,081
Unearned revenue
15,318
-
15,318
Noncurrent liabilities:
Due within one year
2,354,927
1,268,424
3,623,351
Due in more than one year
38,534,292
18,481,911
57,016,203
Total liabilities
44,359,001
21,677,952
66,036,953
Deferred Inflows of Resources:
Deferred inflow of pension earnings
2,887,252
-
2,887,252
Deferred inflow related to OPEB
298,243
92,948
391,191
Total deferred inflows of resources
3,185,495
92,948
3,278,443
Net Position:
Net investment in capital assets
44,045,257
68,309,917
112,355,174
Restricted for:
Capital Improvements
-
24,194,900
24,194,900
Community redevelopment
471,896
-
471,896
Public safety
2,713,199
2,713,199
Culture and recreation
2,264,294
2,264,294
Infrastructure
1,922,956
1,922,956
Debt service
1,807,978
1,807,978
Building services
1,842,892
1,842,892
Transportation
24,742
24,742
Cemetery
1,431,350
-
1,431,350
Unrestricted
23,874,367
28,728,077
52,602,444
Total net position
$ 80,398,931 $
121,232,894 $
201,631,825
The accompanying Notes to Financial Statements are an integral part of this statement. Page 129
City of Clermont, Florida
Statement of Activities
Year Ended September 30, 2020
Functions/Programs:
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Culture and recreation
Interest on long-term debt
Total governmental activities
Business -type Activities
Water
Sewer
Sanitation
Stormwater
Total business -type activities
Total primary government
Expenses
Net (Expense) Revenue and
Changes in Net Position
Program Revenue Primary Government
Charges for Operating Grants Capital Grants and Governmental Business -type
Services and Contributions Contributions Activities Activities Total
$ 5,677,795 $
3,377,133 $
- $
$ (2,300,662)
22,732,773
1,854,226
2,674,824
(18,203,723)
2,470,157
-
18,663
(2,451,494)
1,843,193
522,208
(1,320,985)
846,818
-
85,000
(761,818)
3,722,518
2,088,203
6,451
625,000
(1,002,864)
752,672
-
-
-
(752,672)
38,045,926
7,319,562
3,307,146
625,000
(26,794,218)
6,424,688
7,631,321
20
1,620,076
7,741,759
7,572,657
7
4,954,474
3,293,726
3,561,804
287
-
1,900,908
1,695,361
269
-
19,361,081
20,461,143
583
6,574,550
$ 57,407,007 $
27,780,705 $
3,307,729 $
7,199,550
(26,794,218)
General Revenues:
Property taxes
Business taxes
Franchise fees
Utility taxes
Intergovernmental - unrestricted
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net Position - beginning
Net Position - ending
13,089,628
161,849
3,202,523
4 201 714
$ (2,300,662)
(18,203,723)
(2,451,494)
(1,320,985)
(761,818)
(1,002,864)
(752,672)
(26,794,218)
2,826,729
2,826,729
4,785,379
4,785,379
268,365
268,365
(205,278)
(205,278)
7,675,195
7,675,195
7,675,195
(19,119,023)
13,089,628
161,849
3,202,523
4 201 714
8,403,161
-
8,403,161
632,101
953,526
1,585,627
623,169
-
623,169
-
28,679
28,679
2,177,240
(2,177,240)
-
32,491,385
(1,195,035)
31,296,350
5,697,167
6,480,160
12,177,327
74,701,764
114,752,734
189,454,498
$ 80,398,931
$ 121,232,894 $
201,631,825
The accompanying Notes to Financial Statements are an integral part of this statement. Page 130
City of Clermont, Florida
Balance Sheet
Governmental Funds
September 30, 2020
Assets:
Cash and cash equivalents
Investments
Receivables, net
Inventories, at cost
Due from other governments
Prepaid costs
Restricted Investments
Total assets
Liabilities:
Capital
General Projects
Infrastructure Other Total
Special Governmental Governmental
Revenue Funds Funds
$ 1,410,628 $ 1,273,372 $ 1,140,555 $ 5,763,054 $ 9,587,609
9,263,111 2,873,201
556,908 4,686,147 17,379,367
1,026,698 2,440
1,118 6,524 1,036,780
14,430 -
- - 14,430
2,480,598
240,800 - 2,721,398
341,695 -
- 9,206 350,901
- 11,819,727
- 11,819,727
$ 14,537,160 $ 15,968,740 $ 1,939,381 $ 10,464,931 $ 42,910,212
Accounts payable $ 1,058,582 $ 493,185 $ 16,425 $ 214,025 $ 1,782,217
Due to other funds 397,127 - - - 397,127
Accrued liabilities 1,149,628 53,466 1,203,094
Unearned revenue 13,133 - - - 13,133
Total liabilities 2,618,470 493,185 16,425 267,491 3,395,571
Deferred Inflows of Resources:
Unavailable revenue - liens, forfeitures and rents 117,230 117,230
Total deferred inflows of resources 117,230 117,230
Fund Balances:
Nonspendable
356,125
- 9,206
365,331
Restricted
358,911 -
1,922,956 10,188,234
12,470,101
Assigned
3,226,892 15,475,555
- -
18,702,447
Unassigned
7,859,532 -
- -
7,859,532
Total fund balances
11,801,460 15,475,555
1,922,956 10,197,440
39,397,411
Total liabilities, deferred inflows of
resources, and fund balances
$ 14,537,160 $ 15,968,740 $
1,939,381 $ 10,464,931
Amounts reported for governmental activities in the Statement of Net Position are different
Capital assets used in governmental activities are not financial resources and are not reported in the funds.
73,844,788
Accrued interest payable is not due in the current period and therefore is not reported in the funds.
(260,165)
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the
funds.
117,230
Deferred inflows and outflows of resources related to pension earnings are not recognized in governmental funds,
however, they are recorded in net position under full accrual accounting.
2,653,293
Net pension assets are not current financial resources and therefore are not reported in the funds
4,354,687
The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are
included in the governmental activities of the Statement of Net Position.
1,149,431
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.
(40,857,744)
Net Position of Governmental Activities in the Statement of Net Position.
$ 80,398,931
The accompanying Notes to Financial Statements are an integral part of this statement.
Page131
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2020
Infrastructure
Other
Total
Capital
Special
Governmental
Governmental
General
Projects
Revenue
Funds
Funds
Revenues:
Taxes
$ 17,070,072
$
$
$ 383,119
$ 17,453,191
Franchise fees
3,202,523
-
3,202,523
Licenses and permits
364,674
1,325,841
1,690,515
Intergovernmental revenues
8,034,069
625,000
3,603,194
80,000
12,342,263
Charges for services
2,221,841
-
-
261,420
2,483,261
Fines and forfeitures
240,993
-
240,993
Impact fees/special assessments
-
-
-
2,530,154
2,530,154
Investment earnings
281,828
196,202
16,897
119,927
614,854
Miscellaneous
940,117
34,082
-
3,420
977,619
Total revenues
32,356,117
855,284
3,620,091
4,703,881
41,535,373
Expenditures:
Current:
General government
4,803,861
956
87,030
-
4,891,847
Public safety
19,655,357
-
82,022
1,714,258
21,451,637
Physical environment
2,323,412
7,550
119,085
99,760
2,549,807
Transportation
1,503,972
-
42,482
-
1,546,454
Economic environment
265,922
1,000
-
519,519
786,441
Culture and recreation
2,724,180
-
23,531
153,506
2,901,217
Debt Service:
Principal retirement
-
83,481
2,063,724
2,147,205
Interest and fiscal charges
4,522
-
22,604
744,546
771,672
Capital Outlay:
Physical environment
-
114,432
-
-
114,432
Economic environment
-
3,955,742
-
-
3,955,742
Total expenditures
31,281,226
4,079,680
460,235
5,295,313
41,116,454
Excess (Deficiency) of Revenues Over
Expenditures
1,074,891
(3,224,396)
3,159,856
(591,432)
418,919
Other Financing Sources (Uses):
Transfers in
2,305,557
-
2,846,107
5,151,664
Transfers out
(296,791)
(2,030,712)
(646,921)
(2,974,424)
Sale of general capital assets
29,726
-
29,726
Total other financing sources (uses)
2,038,492
-
(2,030,712)
2,199,186
2,206,966
Net Change in Fund Balances
3,113,383
(3,224,396)
1,129,144
1,607,754
2,625,885
Fund Balances - beginning
8,688,077
18,699,951
793,812
8,589,686
36,771,526
Fund Balances - ending
$ 11,801,460
$ 15,475,555
$ 1,922,956
$ 10,197,440
$ 39,397,411
The accompanying Notes to Financial Statements are an integral part of this statement.
Page132
City of Clermont, Florida
Reconcliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2020
Net Change in Fund Balances - total governmental funds: $ 2,625,885
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report outlays for capital assets as expenditures because such outlays
use current financial resources. In contrast, the Statement of Activities reports only a portion
of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as
depreciation expense for the period. 1,615,205
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-
ins and disposals) is to decrease net position. (34,787)
Governmental funds do not present revenues that are not available to pay current obligations.
In contrast, such revenues are reported in the Statement of Activities when earned. 13,233
Cash pension contributions reported in the funds were more than the calculated pension
expense on the statement of activities, and therefore increased net position. 839,850
Governmental funds report note proceeds as current financial resources. In contrast, the
Statement of Activities treats such issuance of debt as a liability. Governmental funds report
repayment of note principal as an expenditure, In contrast, the Statement of Activities treats
such repayments as a reduction in long-term liabilities. This is the amount by which
reoavments exceeded proceeds. 2,147,205
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds. (957,734)
Internal service funds are used by management to charge the costs of certain activities, such
as health insurance, to individual funds. The net revenue (expense) of certain internal service
funds is reported with governmental activities. (551,690)
Change in Net Position of Governmental Activities $ 5,697,167
The accompanying Notes to Financial Statements are an integral part of this statement.
Page133
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2020
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Taxes
$ 16,661,183 $
16,661,183
$ 17,070,072
$ 408,889
Franchise fees
3,270,000
3,270,000
3,202,523
(67,477)
Licenses and permits
359,000
359,000
364,674
5,674
Intergovernmental revenues
6,476,135
6,657,917
8,034,069
1,376,152
Charges for services
2,112,683
2,112,683
2,221,841
109,158
Fines and forfeitures
101,000
166,190
240,993
74,803
Investment earnings
175,000
175,000
281,828
106,828
Miscellaneous
857,665
959,248
940,117
(19,131)
Total revenues
30,012,666
30,361.221
32.356,117
1,994,896
Expenditures:
Current:
General government:
City council
40,652
40,652
38,011
2,641
City clerk
344,793
355,383
348,377
7,006
City manager
560,840
669,780
666,688
3,092
Finance
1,040,131
1,053,013
965,279
87,734
Legal services
100,000
100,000
96,013
3,987
Planning & zoning
815,678
802,493
857,417
(54,924)
Information technology
771,919
859,357
833,008
26,349
Human resources
485,424
553,123
477,071
76,052
Purchasing
341,507
307,175
301,269
5,906
Other general government
198,905
241,549
220,728
20,821
4,699,849
4,982,525
4,803,861
178,664
Public safety:
Law enforcement
9,439,583
9,692,556
9,285,643
406,913
Fire control
10,328,784
10,409,036
10,369,714
39,322
19,768,367
20,101,592
19,655,357
446,235
Physical environment
2,505,332
2,487,456
2,323,412
164,044
Transportation
1,578,792
1,565,874
1,503,972
61,902
Economic environment
146,841
292,913
265,922
26,991
Culture and recreation
3,136,847
3,184,804
2,724,180
460,624
Interest and fiscal charges
-
-
4,522
(4,522)
Total expenditures
31,836,028
32,615,164
31,281,226
1,333,938
Excess (deficiency) of revenues over
expenditures
(1,823,362)
(2,253,943)
1,074,891
3,328,834
The accompanying Notes to Financial Statements are an integral part of this statement.
Page134
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2020
Other Financing Sources (Uses):
Transfers In 2,026,829 2,043,862 2,305,557 261,695
Transfers Out (218,467) (218,472) (296,791) (78,319)
Sale of General Capital Assets 15,000 15,000 29,726 14,726
Total other financing sources (uses) 1,823,362 1,840,390 2,038,492 198,102
Net Change in Fund Balance - (413,553) 3,113,383 3,526,936
Fund Balance - beginning 8,688,077 8,688,077 8,688,077 -
Fund Balance - ending $ 8,688,077 $ 8,274,524 $ 11,801,460 $ 3,526,936
The accompanying Notes to Financial Statements are an integral part of this statement.
Page135
Page 136
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Infrastructure Special Revenue Fund
Year ended September 30, 2020
Revenues:
Intergovernmental revenues
Investment earnings
Total revenues
Expenditures:
Current:
General government
Public safety:
Police
Fire control
Physical Environment
Transportation
Culture and recreation
Debt Service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Uses:
Transfers out
Total other financing uses
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts
Original Final
Variance with
Final Budget -
Positive
Actual Amounts (Negative)
$ 3,809,553 $
3,809,553 $
3,603,194 $
(206,359)
8,000
8,000
16,897
8,897
3,817,553
3,817,553
3,620,091
(197,462)
153,977
389,316
87,030
302,286
236,500
236,500
69,187
167,313
253,574
253,574
12,835
240,739
490,074
490,074
82,022
408,052
153,260
257,393
119,085
138,308
861,500
924,522
42,482
882,040
189,000
189,000
23,531
165,469
81,827
83,483
83,481
2
24,262
22,606
22,604
2
106,089
106,089
106,085
4
1,953,900
2,356,394
460,235
1,896,159
1,863,653
1,461,159
3,159,856
1,698,697
(2,030,697) (2,030,712) (2,030,712)
(2,030,697) (2,030,712) (2,030,712)
(167,044) (569,553) 1,129,144
793,812 793,812 793,812
$ 626,768 $ 224,259 $ 1,922,956
1,698,697
$ 1,698,697
The accompanying Notes to Financial Statements are an integral part of this statement.
Page137
City of Clermont, Florida
Statement of Net Position
Proprietary Funds
September 30, 2020
Assets:
Current assets:
Cash and cash equivalents
Investments
Restricted cash and cash equivalents
Accounts receivable, net
Inventories
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted investments
Advances to other funds
Interest receivable
Capital assets:
Land, buildings and equipment
Construction in progress
Less accumulated depreciation
Total capital assets (net of accumulated depreciation)
Total noncurrent assets
Total assets
Deferred Outflows of Resources:
Deferred charge on refunding
Deferred outflows related to OPEB
Total deferred outflows of resources
Governmental
Business -type Activities -Enterprise Funds Activities -
Internal Service
IA1..4... C........ C....:4..4:.... Q4.-.w.....4 - T-4-1 C-A
$ 7,244,579
$ 10,635,991
$ 2,061,730
$ 541,184
$ 20,483,484 $
342,533
10,361,103
6,954,627
2,235,894
-
19,551,624
959,152
826,017
720,927
70,233
229,972
1,847,149
-
322,726
416,236
166,538
91,286
996,786
5,138
7,888
-
-
-
7,888
-
79,475
60,594
25,956
14,938
180,963
4,603
18,841,788
18,788,375
4,560,351
877,380
43,067,894
1,311,426
2,374,497
12,277,200
1,109,350
-
15,761,047
-
-
275,000
397,127
672,127
-
20,871
31,217
3,735
-
55,823
582
43,542,016
69,600,604
5,512,649
16,315,636
134,970,905
-
2,051,003
4,819,225
177,171
205,975
7,253,374
(16,838,994)
(34,661,324)
(3,252,877)
(5,052,406)
(59,805,601)
28,754,025
39,758,505
2,436,943
11,469,205
82,418,678
31,149,393
52,341,922
3,947,155
11,469,205
98,907,675
582
49,991,181
71,130,297
8,507,506
12,346,585
141,975,569
1,312,008
287,977
518,874
-
-
806,851
-
185,552
153,481
143,528
62,409
544,970
-
473,529
672,355
143,528
62,409
1,351,821
The accompanying Notes to Financial Statements are an integral part of this statement.
Page138
Liabilities:
Current liabilities:
Accounts payable
Salaries payable
Accrued interest payable
Due to other funds
Compensated absences
Customer deposits payable
Unearned revenue
Revenue bonds and notes payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other post employment benefits
Notes payable
Revenue bonds payable
Total noncurrent liabilities
Total liabilities
Deferred Inflows of Resources:
Deferred inflows related to OPEB
Total deferred inflows of resources
Net Position:
Net investment in capital assets
Restricted for capital improvements
Unrestricted
Total net position
314,894
630,230
116,940
30,623
1,092,687
206,017
98,581
90,553
59,935
31,713
280,782
2,971
30,371
53,992
11,608
37,673
133,644
-
-
-
-
275,000
275,000
18,063
17,486
7,449
2,053
45,051
420,504
-
-
-
420,504
-
-
-
-
-
-
2,185
307,800
547,200
86,735
281,638
1,223,373
-
1,190,213
1,339,461
282,667
658,700
3,471,041
211,173
162,565
157,369
67,041
18,472
405,447
-
1,090,326
894,512
736,467
323,598
3,044,903
-
-
1,236,711
4,015,850
5,252,561
3,520,440
6,258,560
-
-
9,779,000
4,773,331
7,310,441
2,040,219
4,357,920
18,481,911
-
5,963,544
8,649,902
2,322,886
5,016,620
21,952,952
211,173
33,427
24,292
25,013
10,216
92,948
33,427
24,292
25,013
10,216
92,948
25,213,762
33,471,619
2,222,847
7,401,689
68,309,917
5,548,421
18,646,479
-
-
24,194,900
-
13,705,556
11,010,360
4,080,288
(19,531)
28,776,673
1,100,835
$ 44,467,739
$ 63,128,458
$ 6,303,135
$ 7,382,158
121,281,490 $
1,100,835
The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the
Business Activities of the Statement of Net Position. (48,596)
Total Net Position per Government -Wide Financial Statements $ 121,232,894
The accompanying Notes to Financial Statements are an integral part of this statement.
Page139
Page140
City of Clermont, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended September 30, 2020
Governmental
Business -type Activities -Enterprise Funds
Activities -
Internal Service
Water
Sewer
Sanitation
Stormwater Total
Fund
Operating Revenues:
Charges for services
$ 7,344,342 $
7,566,154 $
3,550,386
$ 1,695,361 $ 20,156,243
$ 4,867,944
Miscellaneous
286,979
6,503
11,418
- 304,900
66,704
Total operating revenues
7,631,321
7,572,657
3,561,804
1,695,361 20,461,143
4,934,648
Operating Expenses:
Personnel services
1,974,603
1,940,769
1,307,706
703,750
5,926,828
49,510
Utilities
560,420
890,079
1,647
10,734
1,462,880
-
Dump fees
14,606
288,160
571,468
13,970
888,204
Administrative services
484,958
412,035
212,436
135,771
1,245,200
Repairs and maintenance
741,157
278,175
144,310
62,401
1,226,043
Depreciation and amortization
1,668,598
2,892,156
585,619
680,194
5,826,567
-
Professional services
155,459
122,857
45,131
17,019
340,466
60,042
Insurance claims and expenses
122,513
190,767
52,389
36,318
401,987
5,615,898
Other supplies and expenses
493,283
400,070
307,350
73,555
1,274,258
-
Total operating expenses
6,215,597
7,415,068
3,228,056
1,733,712
18,592,433
5,725,450
Operating income (loss)
1,415,724
157,589
333,748
(38,351)
1,868,710
(790,802)
Nonoperating Revenues (Expenses):
Investment income
349,023
516,243
83,984
4,276
953,526
17,247
Interest expense
(142,241)
(255,125)
(35,195)
(114,222)
(546,783)
-
Grants
20
7
287
269
583
Gain (loss) on disposal of capital assets
9,500
15,200
3,979
-
28,679
-
Total nonoperating revenue (expenses)
216,302
276,325
53,055
(109,677)
436,005
17,247
Income (loss) before contributions and transfers
1,632,026
433,914
386,803
(148,028)
2,304,715
(773,555)
Capital contributions
1,620,076
4,954,474
-
-
6,574,550
Transfers in
18,689
2,781
44,140
920
66,530
Transfers out
(1,108,101)
(1,135,669)
-
-
(2,243,770)
Change in net position
2,162,690
4,255,500
430,943
(147,108)
6,702,025
(773,555)
Total Net Position - Beginning
42,305,049
58,872,958
5,872,192
7,529,266
1,874,390
Total Net Position - Ending
$ 44,467,739
$ 63,128,458 $
6,303,135
$ 7,382,158
$ 1,100,835
Change in Net Position, per above
6,702,025
Internal service funds are used by management to charge the costs of certain
activities to individual funds.
The net revenue (expense)
of certain
internal service funds is reported with Business Activities.
(221,865)
Change in Business -Type Activities in Net Position per Government -Wide Financial
Statements
$ 6,480,160
The accompanying Notes to Financial Statements are an integral part of this statement. Page 141
City of Clermont, Florida
Statement of Cash Flows
Proprietary Funds
Year Ended September 30, 2020
Cash Flows from Operating Activities:
Receipts from customers
Receipts from internal services provided
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
Cash Flows from Non -Capital Financing Activities:
Due from other funds
Due to other funds
Operating grants
Transfers in
Transfers out
Net cash provided (used) by non -capital financing.
activities
Cash Flows from Capital and Related Financing Activities:
Governmental
Activities -
Business -Type Activities -Enterprise Funds Internal Service
Water Sewer Sanitation Stormwater Total Fund
$ 7,661,986 $ 7,543,002 $ 3,558,970 $ 1,709,190 $ 20,473,148 $ -
- - - - - 4,932,738
(2,481,873) (2,370,972) (1,328,344) (421,200) (6,602,389) (5,725,424)
(1,870,229) (1,807,818) (1,216,276) (652,066) (5,546,389) (46,539)
3,309,884 3,364,212 1,014,350 635,924 8,324,370 (839,225)
110,000 110,000
20 7 287 269 583
18,689 2,781 44,140 920 66,530
(1,108,101) (1,135,669) - - (2,243,770)
(1,089,392) (1,132,881) 154,427 1,189 (2,066,657)
Acquisition of capital assets
(1,806,235)
(4,042,954)
(952,990)
(166,612)
(6,968,791)
Sale of capital assets
9,500
15,200
3,979
28,679
Interest paid on long-term debt
(96,142)
(170,917)
(35,936)
(116,628)
(419,623)
Principal paid on debt
(298,080)
(529,920)
(84,540)
(274,371)
(1,186,911)
Capital grants
-
-
400,000
400,000
Fees and assessments received
1,620,076
4,954,474
-
6,574,550
Net cash provided (used) by capital and related financing
activities
(570,881)
225,883
(1,069,487)
(157,611)
(1,572,096)
The accompanying Notes to Financial Statements are an integral part of these statements.
Page142
Cash Flows from Investing Activities:
Sale (purchase) of investments
Investment income
Net cash provided by investing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - beginning
Cash and Cash Equivalents - end
Classified As:
Cash and cash equivalents
Restricted cash and cash equivalents
Total
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Operating income (loss)
Adjustments Not Affecting Cash:
Depreciation and amortization
Change in Assets and Liabilities:
Decrease (Increase) in accounts receivable
Increase in unearned revenue
Increase in customer deposits
Decrease in prepaid costs
Decrease (Increase) in inventory
Increase (Decrease) in accounts payable
Increase in OPEB
Increase in accrued liabilities
Total adjustments
Net Cash Provided (Used) by Operating Activities
Noncash Investing, Capital, and Financing Activities:
Increase (Decrease) in Fair Value of Investments
197,165
292,788
5,815
495,768
(2,846)
308,195
455,176
93,781
4,276
861,428
17,441
505,360
747,964
99,596
4,276
1,357,196
14,595
2,154,971
3,205,178
198,886
483,778
6,042,813
(824,630)
5,915,625
8,151,740
1,933,077
287,378
16,287,820
1,167,163
$ 8,070,596 $
11,356,918 $
2,131,963 $
771,156
$ 22,330,633 $
342,533
$ 7,244,579 $
10,635,991 $
2,061,730 $
541,184
$ 20,483,484 $
342,533
826,017
720,927
70,233
229,972
1,847,149
-
$ 8,070,596 $
11,356,918 $
2,131,963 $
771,156
$ 22,330,633 $
342,533
$ 1,415,724 $
157,589 $
333,748 $
(38,351) $
1,868,710 $
(790,802)
1,668,598
2,892,156
585,619
680,194
5,826,567
35,186
(29,655)
(2,834)
13,829
16,526
(4,095)
-
-
-
2,185
(4,521)
(4,521)
-
(30,014)
(17,224)
(6,263)
(3,352)
(56,853)
(3,904)
10,765
-
-
10,765
109,772
228,395
12,650
(68,080)
282,737
(45,580)
79,581
85,167
63,049
36,256
264,053
-
24,793
47,784
28,381
15,428
116,386
2,971
1,894,160
3,206,623
680,602
674,275
6,455,660
(48,423)
$ 3,309,884 $
3,364,212 $
1,014,350 $
635,924 $
8,324,370 $
(839,225)
$ 47,786 $
71,475 $
(8,552) $
- $
110,709 $
The accompanying Notes to Financial Statements are an integral part of these statements.
Page143
City of Clermont, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2020
Total Employee
Pension Funds
Assets:
Cash and cash equivalents
$ 1,871,283
Investments:
U.S. Government & other debt securities
16,860,404
Equities
39,837,474
Total investments
56,697,878
Total assets
58,569,161
Liabilities:
Refunds payable and other
-
Total liabilities
-
Net Position Restricted for Pensions
$ 58,569,161
The accompanying Notes to Financial Statements are an integral part of this statement.
Page144
City of Clermont, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2020
Additions:
Contributions:
Employer
Plan members
State
Total Employee
Pension Funds
$ 3,472,675
458,532
Total contributions 3,931,207
Investment earnings
Net increase in fair value of investments 5,824,964
Investment expense (7,500)
Total net investment earnings 5,817,464
Total additions 9,748,671
Deductions:
Benefits/distributions
3,059,586
Administrative
134,239
Total deductions
3,193,825
Change in Net Position
6,554,846
Net Position - beginning
52,014,315
Net Position - ending
$ 58,569,161
The accompanying Notes to Financial Statements are an integral part of this statement.
Page145
Page146
NOTES TO FINANCIAL STATEMENTS
Page147
Page148
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located in Lake County. The City of Clermont
was incorporated under State law in December 1916 and operates under the council-manager form of government under its charter
adopted pursuant to H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City is composed of a
Mayor and four (4) members elected Council. The City Council is responsible for the establishment and adoption of policy. The
execution of such policy is the responsibility of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units.
The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its
officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary
government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on
it.
A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or
activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the
primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to
finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization. In applying the above criteria, the City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund.,
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a dependent taxing district established in
accordance with Chapter 163, Part III, Florida Statutes. Notification to affected taxing agency was done in compliance with Chapter
163.346, Part III, Florida Statutes. The incremental annual increase in tax over the base years will be used to fund projects designed to
enhance and improve the described area. The City Council, being the duly elected governmental body for the designated area,
passed Resolution 97-950, which established the City of Clermont as the Redevelopment Agency for the purpose of carrying out the
community redevelopment programs and plans within the area. Through Ordinance 359-M the City established the Community
Redevelopment Trust Fund to account for all transactions generated by this special revenue fund. The City of Clermont Community
Redevelopment Fund is presented as a blended component unit. The CRA is governed by a board of seven- the five members of the
Clermont City Council and two individuals appointed by the City Council. On December 8, 2015, Ordinance No. 2015-77 passed and
modification of the Community Redevelopment Plan was approved. Because the governing body of the CRA is substantively the same
as the City and the City has operational responsibility for the CRA, the CRA is presented as a blended component unit of the City.
Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information
on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter
are excluded from the government -wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Page149
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the
end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
Capital Projects Fund accounts for financial resources segregated for the acquisition or construction of major capital facilities.
Infrastructure Special Revenue Fund accounts for the proceeds of the Local Government Infrastructure Surtax. The proceeds
and interest accrued thereto, by law are only to be used to finance, plan and construct infrastructure.
Nonmajor Governmental Fund Types
Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted or committed to
expenditures for specified purposes other than debt service or capital projects.
The Debt Service Fund was established to account for the accumulation of resources and payment of bond principal and interest
from governmental resources.
Major Proprietary Funds
Water Fund is used to account for the operations of the City's water system, which is financed in a manner similar to private
business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are
financed primarily through user charges.
Sewer Fund is used to account for the operations of the City's sewer system, which is financed in a manner similar to private
business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are
financed primarily through user charges.
Sanitation Fund is used to account for the fiscal activities of the City's refuse collection and disposal operation.
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the City's stormwater drainage operation, as well
as the funding and payment of related debt.
Page150
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Nonmajor Proprietary Funds
Internal Service Fund is used to account for the costs of group insurance which are charged to other departments on a cost
reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general employees retirement plans which
accumulate resources for pension benefit payments to qualified employees.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions
to this general rule are other charges between the City's water and sewer function and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally
dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all
taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the City's water, sewer, sanitation and stormwater utility funds are
charges to customers for sales and services. The City also recognizes as operating revenue the meter fees intended to recover
the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources
first, then unrestricted resources as they are needed.
Assets, Liabilities, Deferred Outflowsllnf lows and Net Position/Fund Balance:
Deposits and Investments
The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments
with original maturities of three months or less from the date of acquisition.
Investments of the City are reported at fair value and are categorized within the fair value hierarchy established in accordance
with GASB Statement No. 72, Fair Value Measurement and Application. The City's investments consist of investments
authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are
referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e.,
the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other
funds."
Any residual balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances".
Advances between funds, as reported in the fund financial statements, are offset by a non -spendable fund balance in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
Page151
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to
the City. City property tax revenues are recognized when levied to the extent that they result in current receivables.
All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of
each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December,
2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year,
certificates are sold for all delinquent taxes on real property.
Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as
expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements. These are recorded as expenditures when consumed rather than when
purchased.
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the balance sheet because they are maintained in separate accounts and their use is limited by
applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet.
Capital Assets
Capital assets, which include property, plant, equipment, intangible and infrastructure assets (e.g., roads, bridges, sidewalks,
and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets
constructed.
Capital assets of the City are depreciated using the straight line method over the following estimated useful lives:
Assets
Years
Buildings
10-50
Improvements
15-50
Infrastructure
30-50
Equipment& Machinery
3-15
Intangible Assets
3-15
Page152
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay is
accrued when incurred in the government -wide and proprietary financial statements. A portion of sick pay is accrued for
employees with at least ten (10) years of service. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated
absences, net pension obligations, and net other postemployment benefit obligations are generally liquidated by the general
fund.
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The
face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other
financing sources while discounts on debt issuances are reported as other financing uses.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The
City has three items that qualify for reporting in this category. The deferred charge on refunding, deferred outflows of pension
earnings and deferred outflow related to OPEB reported in the government -wide statement of net position and the statement of
net position - proprietary funds. A deferred charge on refunding results from the difference in the carrying value of refunded debt
and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only
one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues from several sources: liens, forfeitures and rental income. These amounts are deferred and
recognized as an inflow of sources in the period that the amounts become available. The City also has deferred inflows of
pension earnings and OPEB reported in the government -wide statement of net position.
Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and
unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the
government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City's policy to consider restricted net position to have been depleted before
unrestricted net position is applied.
Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of
committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed,
assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about
the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to
have been depleted before using any of the components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund
balance. Unassigned fund balance is applied last.
Page153
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of
resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment
(committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a
formal action of the City's highest level of decision -making authority. The Council is the highest level of decision -making authority
for the City that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the
limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove
or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet
criteria to be classified as committed. The Council has maintained authority to assign fund balance.
The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated
revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist
temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
New GASB Statements Implemented
In fiscal year 2020, the City implemented GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative
Guidance. This Statement provides temporary relief to governments and other stakeholders in light of the COVID-19 pandemic by
postponing the effective dates of provisions in certain other statements. There was no effect on beginning balances of the City.
NOTE 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in
Fund Balances and the Government -Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net
changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the
government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as
expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense." The details of this difference are as follows:
Capital Outlay $ 5,429,054
Depreciation Expense (3,813,849)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 1,615,205
Page154
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Another element of that reconciliation states that "The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position." The details of this difference are as follows:
Principal Repayment $ 2,147,205
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 2,147,205
Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in governmental funds." The details of this difference are as
follows:
Compensated Absences $ (100,658)
Other Post Employment Benefits (876,076)
Accrued Interest Payable 19,000
Net adjustment to decrease n et changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ (957,734)
NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
• Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following October 1. The operating budget includes proposed expenditures and the means of
financing them.
• Budget workshops are scheduled as needed.
• The general summary of the budget and notice of public hearing is published in the local newspaper.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October 1, the budgets are legally enacted through passage of a resolution.
• The City Manager is authorized to transfer budgeted amounts within departments; however, any revisions that alter the total
appropriations of any department must be approved by the City Council.
• The level of classification detail at which expenditures may not legally exceed appropriations is the department level.
• Appropriations lapse at the close of the fiscal year to the extent they have not been expended. Encumbrance accounting is
employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at year end are reported
as assigned fund balances and do not constitute expenditures or liabilities because the commitments will be re -appropriated
and honored during the subsequent year.
• Budgets are adopted for the general fund, special revenue funds, debt service funds and the capital projects fund on a basis
consistent with generally accepted accounting principles, except as described below under Budget Basis of Accounting.
Budgets are also adopted for the enterprise funds: however, budgetary comparisons are not presented since they are not
required under generally accepted accounting principles.
• The City Council, by Ordinance or Resolution, may make supplemental appropriations in excess of those originally
estimated for the year up to the amount of available revenues. Budgeted amounts presented in the accompanying financial
statements have been adjusted for legally authorized revisions.
Page155
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED)
Budgetary Basis of Accounting
The City includes a portion of the prior year's fund balances represented by unappropriated liquid assets remaining in the fund as
budgeted revenue in the succeeding year. The results of operations on a GAAP basis do not recognize the fund balance allocation as
revenue as it represents prior periods' excess of revenues over expenditures. The City does not budget for capital outlay expenditures
and other financing sources related to the acquisition of assets through notes payable.
Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in various departments of the General Fund, Capital Projects Fund, Fire Inspection Special
Revenue Fund, and Debt Service Fund. Theses excess expenditures were funded by greater than anticipated revenues and available
fund balance.
NOTE 4 CASH AND INVESTMENTS
Deposits
All bank deposits were fully covered by federal depository insurance or by collateral held in banks that are members of the State of
Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans.
This limits local government deposits to "authorized depositories".
Investments
Investments in all fund types are stated at fair value, which is the amount for which an investment could be exchanged in a current
transaction between willing parties, other than in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City's investment policies are governed by state statute and city ordinance. Authorized investments are:
• The Local Government Surplus Funds Trust (SBA).
• SEC registered money market funds.
• Interest -bearing time deposits or savings accounts in qualified public depositories.
• Direct obligations of the U.S. Treasury.
• Federal agencies and instrumentalities.
• Securities of, or other interests in, any open-end or closed -end management -type investment company or investment trust
registered under the Investment Company Act of 1940.
• Repurchase Agreements.
• Other investments authorized by ordinance.
The assets of the City's general employees defined benefit pension fund, are invested in the pooled investment fund for the
Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund consist of corporate bonds and stocks and cash
equivalents. The fund is stated at fair value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account as provided by the Florida Municipal Pension Fund.
Page156
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Investments made by the City of Clermont at September 30, 2020 are summarized below. Defined benefit pension plan investments,
other than $39,837,474 in mutual funds, investing in equity securities, are included below. In accordance with GASB 31, investments
are reported at fair value.
Weighted Average
Investment Type
Fair Value
Credit Rating
Maturity
Federal Agency Bond
$ 4,879,457
AA+
2.48 years
Federal Agency Mortgage -Backed Securities
951,264
AA+
9.13 years
Federal Agency Colataralized Mortgage Obligation
1,769,798
AA+
3.43 years
US Treasury Notes
6,535,435
AA+
1.74 years
Supra -National Agency Bond/Note
712,435
AAA
2.33 years
Corporate Note
6,509,629
BBB+/AA
1.95 years
Asset Backed Security
4,305,753
AAA/NR
3.3 years
Municipal Bonds
1,014,150
AAA
2.75 years
FL Palm
38,792,992
AAAm
N/A
Pension Fixed Income Securities
16,860,404
various
2 - 8 years
$ 82,331,317
Credit Risk
The City's investment policy limits credit risk by restricting authorized investments to those described above.
Custodial Credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's
investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local
governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of
the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its
member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2020, all of the city's
bank deposits were in qualified public depositories.
For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the
value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2020, none of the
investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or
book entry form.
Concentration of Credit Risk:
The City's investment policy requires diversification but does not specify limits on types of investments.
Interest Rate Risk:
The City's investment policy does not specifically address interest rate risk, however the general investment policy is to apply the
prudent -person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The City manages its exposure to declines in fair
values by investing primarily in pooled investments that have a weighted average maturity of less than three months.
Page157
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting
principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction
between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. The City uses a market approach in measuring fair value that uses prices and other relevant information generated by
market transactions involving identical or similar assets liabilities, or groups of assets and liabilities.
Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical
assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for
identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant
unobservable inputs that uses the best information available under the circumstances, which includes the City's own data in
measuring unobservable inputs.
The City has the following recurring fair value measurements as of September 30, 2020:
Investments Valued by Fair Value Level
Federal Agency Bond
$ 4,879,457
Federal Agency Colataralized Mortgage Obligation
1,769,798
Federal Agency Mortgage -Backed Securities
951,264
US Treasury Notes
6,535,435
Supra -National Agency Bond/Note
712,435
Corporate Note
6,509,629
Asset Backed Security
4,305,753
Municipal Bonds
1,014,150
Pension Fixed Income Securities
16,860,404
Pension Equity Securities
39,837,474
$ 83,375,799
Quoted Prices in
Active Markets for
Identical Assets
(Level 11
6,535,435
$ 6,535,435
Significant Other
Observable Inputs
(Level 2)
$ 4,879,457
1,769,798
951,264
712,435
6,509,629
4,305,753
1,014,150
16,860,404
39,837,474
$ 76,840,364
Page158
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 5 RECEIVABLES
Receivables as of year end for the City's individual major funds and nonmajor funds, including the applicable allowances for
uncollectible accounts, are as follows:
Less Allowance
for Uncollectible
Accounts
Taxes Other
Accounts
Total
General Fund
$2,613,100
$154,923 $789,250
$ (2,530,575)
$1,026,698
Capital Projects Fund
- 2,440
2,440
Infrastructure Special Revenue Fund
-
1,118
1,118
Water Fund
322,144
66,408
(44,955)
343,597
Sewer Fund
565,177
31,217
(148,941)
447,453
Sanitation Fund
218,495
4,224
(52,446)
170,273
Stormwater Fund
116,522
326
(25,562)
91,286
Nonmajor Governmental Funds
-
6,524
6,524
Internal Service Fund
5,720
5,720
$ 3,835,438
$154,923 $ 907,227
$ (2,802,479)
$ 2,095,109
NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2020 was as follows:
Beginning Balance Increases Decreases Ending Balance
Governmental Activities:
Capital Assets, not being depreciated:
Land $ 25,308,076 $ 37,224 $ - $ 25,345,300
Construction in progress 4,436,487 4,659,370 (3,526,956) 5,568,901
Total capital assets, not being depreciated 29,744,563 4,696,594 (3,526,956) 30,914,201
Capital Assets, being depreciated:
Buildings
Improve ments/intrastructu re
Machinery and equipment
Intangibles
Total capital assets being depreciated
Less Accumulated Depreciation for:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
30,802,433
501,789
31,304,222
28,370,288
3,105,728
(349,915)
31,126,101
17,302,226
592,539
(1,202,224)
16,692,541
503,044
65,619
(13,718)
554,945
76,977,991
4,265,675
(1,565,857)
79,677,809
(11,208,722)
(1,042,596)
-
(12,251,318)
(12,814,097)
(1,217,241)
349,915
(13,681,423)
(9,983,878)
(1,535,498)
1,167,437
(10,351,939)
(451,487)
(24,773)
13,718
(462,542)
(34,458,184)
(3,820,108)
1,531,070
(36,747,222)
42,519,807
445,567
(34,787)
42,930,587
$ 72,264,370
$5,142,161
$(3,561,743) $
73,844,788
Page159
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 6 CAPITAL ASSETS (CONTINUED)
Increases in accumulated depreciation for governmental activities includes accumulated depreciation on assets transferred from
business -type activities, therefore total increases in accumulated depreciation is not the same as depreciation expense. This
difference is $6,259.
Business -type Activities:
Capital Assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital Assets, being depreciated:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total capital assets being depreciated
Less Accumulated Depreciation for:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
Beginning
Balance Increases Decreases Ending Balance
$ 1,511,807
$ -
$ -
$ 1,511,807
3,637,964
4,633,088
(1,017,678)
7,253,374
5,149,771
4,633,088
(1,017,678)
8,765,181
989,780
-
989,780
119,583,409
1,373,307
120,956,716
9,306,013
1,980,074
(199,727)
11,086,360
426,242
-
426,242
130,305,444
3,353,381
(199,727)
133,459,098
(78,722)
(37,607)
(116,329)
(48,841,418)
(4,690,197)
-
(53,531,615)
(5,060,713)
(1,058,864)
199,727
(5,919,850)
(197,908)
(39,899)
-
(237,807)
(54,178,761)
(5,826,567)
199,727
(59,805,601)
76,126,683
(2,473,186)
-
73,653,497
$81,276,454
$2,159,902
$(1,017,678)
$ 82,418,678
Depreciation expense was charged to functions/programs as follows:
Governmental Activities
General government $ 633,757
Public safety 1,572,443
Physical env ironment/transportation 232,400
Economic environment 390,138
Culture and recreation 985,111
Total Depreciation Expense - governmental activities $ 3,813,849
Business -type Activities
Water
$ 1,668,598
Sewer
2,892,156
Sanitation
585,619
Storrrwater
680,194
Total Depreciation Expense - business -type activities $ 5,826,567
Page160
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 7 CAPITAL LEASES
The City has entered into lease agreements for financing the acquisition of communications equipment. These lease agreements
qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum
lease payments as of the inception date.
The assets acquired through capital leases are as follows:
Machinery & equipment
Less: accumulated depreciation
Total
Governmental Activities
$ 919,125
(172,622)
$ 746,503
Amortization of equipment leased and capital leases is included in depreciation expense. The future minimum lease obligations and
the net present value of these minimum payments as of September 30, 2020 were as follows:
Year Ending September 30
Governmental Activities
2021
$ 106,086
2022
106,086
2023
106,086
2024
106,086
2025
106,086
Thereafter
318,258
Total minimum lease payments
848,688
Less: amountrepresenting interest
(94,424)
$ 754,264
NOTE 8 LONG-TERM DEBT
Bonds Payable- Public Offering
The City issues bonds to provide funds for the acquisition and construction of major capital assets. In the event of default, bondholders
may take any remedies legally appropriate, and declare all principal and accrued interest is due and payable immediately. Bonds have
been issued for business -type activities.
The 2009 Water and Sewer Revenue and Refunding Bonds are secured by net revenue of the water and sewer system. The bonds
were paid off during the year. For the fiscal year, principal and interest paid on this series was $747,863 and total pledged revenue
was $6,999,333.
In a prior year, the City issued Water and Sewer Revenue and Refunding Bonds, Series 2017 in the amount of $10,817,000 with
interest of 2.38% to partially refund the Water and Sewer Revenue and Refunding Bond Series 2009. This bond is secured by the net
revenue of the water and sewer system. The total principal and interest remaining to be paid on this series is $12,085,087. For the
fiscal year, principal and interest paid on this series was $347,196 and total pledged revenue was $6,999,333.
Page161
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 8 LONG-TERM DEBT (CONTINUED)
The original amount of revenue bonds issued in prior years is described below. Revenue bonds outstanding at year end are as
follows:
Business -Type Activities
Water and Sewer Revenue
Refunding Bonds,
Series 2017
Balance
Interest Rates Original September 30,
and Dates Maturity Amount 2020
2.38% 12/1/2018
to
(6/1 & 12/1) 12/1/2030 $ 10,817,000 $ 10,634,000
$ 10,634,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Business - Type Activities
Year Ending September 30,
Principal
Interest
2021
$ 855,000 $
242,915
2022
879,000
222,280
2023
900,000
201,110
2024
920,000
179,452
2025
943,000
157,283
2026-2030
5,056,000
435,183
2031
1,081,000
12,864
Total $ 10,634,000 $ 1,451,087
Notes Payable- Direct Borrowing
The City issued Public Improvement Refunding Revenue Note, Series 2016 in the amount of $5,331,196 with interest of 2.03% to
refund the Public Improvement Revenue Note, Series 2013. This note is secured by public services taxes and communications service
tax. Total principal and interest remaining to be paid on this series is $4,288,208. For the fiscal year, principal and interest paid on
this series was $476,895 and total pledged revenue was $5,434,491. In the event of default, the lender may seek enforcement of all
remedies available under the law. Any amounts due on the note that remain unpaid shall bear interest at the default rate until all
amounts then due are paid in full.
The City issued Infrastructure Sales Surtax Revenue Note, Series 2016 in the amount of $5,300,000 with interest of 2.12% to finance
the costs of the acquisition and construction of a new municipal police station. This note is secured by the infrastructure sales surtax.
Total principal and interest remaining to be paid on this series is $4,601,540. For the fiscal year, principal and interest paid on this
series was $418,797 and total pledged revenue was $3,603,194. In the event of default, the lender may seek enforcement of all
remedies available under the law. Any amounts due on the note that remain unpaid shall bear interest at the default rate until all
amounts then due are paid in full.
The City issued Master Plan Capital Projects Revenue Note, Series 2017 in the amount of $30,000,000 with interest of 2.63% to fund
master plan projects, Victory Pointe, Boat Ramp Relocation, Downtown Waterfront District Revitalization, Legacy Loop Trail Spur,
Public Wi-Fi Network, Public Works Complex, and City Limits Entryway Signs. This note is secured by a covenant to budget and
appropriate. Total principal and interest remaining to be paid on this series is $31,450,522. For the fiscal year, principal and interest
paid on this series was $2,424,053. In the event of default, the lender may seek enforcement of all remedies available under the law.
Any amounts in the project fund shall be applied to repayment of principal and interest.
Page162
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 8 LONG-TERM DEBT (CONTINUED)
Revenue notes outstanding at year end are as follows:
Balance
Interest Rates
Original
September 30,
Governmental Activities
and Dates
Maturity
Amount
2020
Public Improvement Refunding
2.03%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1/2028
$
5,331,196
3,919,507
Infrastructure Sales Surtax
2.12%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1/2030
$
5,300,000
4,104,694
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1/2032
$
23,670,559
21,021,066
$ 29,045,267
Business -Type Activities
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1/2032
$
6,329,441
$ 5,620,934
Annual debt service requirements to maturity for revenue notes are as follows:
Governmental Activities
Business -Type Activities
Year Ending September 30,
Principal
Interest
Principal
Interest
2021 $
2,114,207 $
693,695 $
368,373 $
142,987
2022
2,164,966
641,584
377,868
133,174
2023
2,218,409
588,188
387,995
123,103
2024
2,272,175
533,472
398,122
112,765
2025
2,327,849
477,405
408,671
102,156
2026-2030
12,035,447
1,501,403
2,209,608
341,647
2031-2033
5,912,214
223,814
1,470,297
58,675
Total $
29,045,267 $
4,659,561 $
5,620,934 $
1,014,507
Page163
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 8 LONG-TERM DEBT (CONTINUED)
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2020 was as follows:
Governmental Activities
Public improvement revenue notes
Infrastructure revenue notes
Capital Projects revenue notes
Capital Leases
Other post employment benefits
Net pension liability
Compensated absences
Governmental activity long-term liabilities
Business -type Activities
Bonds payable -
Revenue bonds
Premium
Total bonds payable
Capital Projects revenue notes
Other post employment benefits
Compensated absences
Business -type activity long-term liabilities
Beginning
Ending
Due Within
Balance
Additions
Deductions
Balance
One Year
$ 4,312,844
$
$ (393,337)
$ 3,919,507
$ 401,322
4,432,992
(328,298)
4,104,694
335,258
22,363,155
(1,342,089)
21,021,066
1,377,627
837,745
(83,481)
754,264
85,734
8,888,217
620,136
9,508,353
-
39,749
(8,274)
31,475
-
1,449,202
245,578
(144,920)
1,549,860
154,986
$42,323,904
$ 865,714
$ (2,300,399)
$40,889,219
$ 2,354,927
$11,462,000
$ $ (828,000)
$10,634,000
$ 855,000
5,420
(5,420)
-
11,467,420
(833,420)
10,634,000
855,000
5,979,845
(358,911)
5,620,934
368,373
2,857,991
186,912
3,044,903
-
409,509
81,940 (40,951)
450,498
45,051
$20,714,765
$ 268,852 $ (1,233,282)
$19,750,335
$ 1,268,424
NOTE 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund transfers for the year ended September 30, 2020 consisted of the following:
Transfers Out:
General Fund
Infrastructure Fund
Water Fund
Sewer Fund
Nonmajor Governmental
Transfers In
General
Fund
Water
Fund
Sewer Sanitation Stormwater Nonmajor
Fund Fund Fund Govt
Total
$
$ 17,943 $
2,781 $ 44,140 $ 920 $ 231,007
$ 296,791
-
- - - 2,030,712
2,030,712
1,108,101
-
-
1,108,101
1,134,923
746
-
1,135,669
62,533
-
584,388
646,921
$2,305,557 $ 18,689 $ 2,781 $ 44,140 $ 920 $2,846,107 $5,218,194
The majority of the transfers were to fund other capital projects and debt service payments. Transfers from the Water Fund and
Sewer Fund to the General Fund were based on a percentage of water and sewer sales.
Page164
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED)
The composition of interfund advances as of September 30, 2020 is as follows:
Receivable Fund
Sewer Fund
Sanitation Fund
Payable Fund
Amount
Stormwater Fund $
275,000
General Fund
397,127
$ 672,127
The balance due to the Sanitation fund from the General Fund is a result of an interfund loan for the purchase of a fire truck to be
repaid over ten years. The balance due to the Sewer fund from the Stormwater fund is for the upfront construction costs on the
Victory Pointe project that will be funded from various grants upon the completion of the project.
NOTE 10 RETIREMENT PLANS
The City maintains three separate single -employer, defined benefit plans for general employees, sworn police officers and
firefighters, as well as a defined contribution plan for general employees. The investment and administrative agent for the general
employees defined benefit plan is the Florida Municipal Pension Trust Fund, an agent of the multiple -employer Public Employee
Retirement System. The assets and benefits of the general employees defined contribution plan are administered by the Florida
League of Cities. The plan administration for the police and firefighters pension plans is the Pension Resource Center.
With recent adoption by the Florida Legislation of Chapter 2015-39, Laws of Florida, a separate Defined Contribution component of
the Police and Fire Retirement Plans was established on October 1, 2015 and will provide special benefits in the form of a
supplemental retirement, termination, death and disability benefits to be funded solely and entirely by premium tax monies. The
Share Plan benefits are additional to the benefits currently provided by the defined benefit component currently provided. Funds will
be allocated to eligible members on each valuation date.
Defined Benefit Pension Plans
Each plan is independently governed by separate boards of trustees. Assets may not be transferred between plans, or used for any
purpose other than to benefit each plan's participants as defined in their authorizing ordinances. The general employee's plan board
contracts with the Florida Municipal Pension Trust Fund (FMPTF), a private, not -for -profit corporation established by the Florida
League of Cities (FLC) for FLC members who wish to use its services. The FMPTF acts as a common investment and administrative
agent for its members, contracting with a bank custodian, investment manager and actuary to provide a commingled investment
fund and plan valuation services. This plan is included as part of the City's reporting entity in Pension Trust Funds. The Clermont
City Council adopted and may amend plan provisions by resolution. The Police and Firefighters' Pension Plans are administered by
a Pension Resource Center. These plans do not issue stand alone audit reports.
Stand-alone audited financial statements of the FMPTF are maintained on file at the FLC offices in Tallahassee, Florida, and are
available upon request to the Pension Services Division.
General Employees
Contributions
The City's actuarially determined contribution rate per the October 1, 2018 actuarial valuations is $11,018 for general employees.
Administrative costs are deducted from the net position of the plan.
Summary of Significant Accounting Policies
Plan Description - The general employees defined benefit pension plan is for general employees hired prior to September 30, 1985.
Plan Administration - The General Employees' Pension is administered by a Board of Trustees.
Page165
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Plan Membership - At September 30, 2020 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits
Inactive Plan Members Entitled to but Not Yet Receiving Benefits
Active Plan Members
7
7
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2020, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability (asset) of
the sponsor on September 30, 2020 were as follows:
Total Pension Liability $ 305,055
Plan Fiduciary Net Position (273,580)
Sponsor's Net Pension Liability (Asset) $ 31,475
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 89.68%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2018, updated September 30, 2020 using
the following actuarial assumptions:
Inflation 2.77%
Salary Increases 0.00%
Investment Rate of Return 7.00%
Mortality rates were based on the sex -distinct rates set forth in the RP-2000 Combined Mortality Table with full generational
improvements in mortality using Scale BB.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation)
are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2020 are summarized in the following table:
Asset Class
Core Bonds
Core Plus
U.S. Large Cap Equity
U.S. Small Cap Equity
Non-U.S. Equity
Core real estate
Total
Target Allocation
100%
Long Term
Expected Real Rate
of Return
1.60%
2.10%
4.60%
5.50%
6.70%
5.00%
Page166
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Discount rate
The discount rate used to measure the total pension liability was 7%. The projection of cash flows used to determine the discount
rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be
made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Liability
Position
Net Pension Liability
(a)
(b)
(a) - (b)
Balance at September 30, 2019 $
333,418
$ 293,669
$ 39,749
Changes Due to:
Service Cost
-
-
-
Expected interest growth
21,619
19,304
2,315
Unexpected investment income
-
(2,984)
2,984
Demographic experience
-
-
-
Employer contributions
-
11,018
(11,018)
Benefit payments and refunds
(49,982)
(42,156)
(7,826)
Administrative expenses
-
(5,271)
5,271
Assumption changes
-
-
-
Balance at September 30, 2020 $
305,055
$ 273,580
$ 31,475
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Current Discount
1 % Decrease
Rate
1 % Increase
6.00%
7.00%
8.00%
General Pension Plan Net Pension Liability $
46,044
$ 31,475
$ 18,195
Deferred outflows and inflows of resources
For the year ended September 30, 2020 the City will recognize a pension expense of ($3,912). On September 30, 2020 the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of
Deferred Inflows of
Resources
Resources
Differences Between Expected and Actual Experience
$ -
$
Net Difference Between Projected and actual Earnings on
Pension Plan
Investments
1,282
$ 1,282
$
Page167
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended September 30
2021
$ (2,753)
2022
1,499
2023
1,940
2024
596
2025
Thereafter
Police Officers' Retirement -
The police officers' defined benefit pension plan is a local law, single employer, defined benefit pension plans as defined under
Florida Statutes, Chapters 175 and 185, which covers all sworn police officers. Employees are eligible to participate in the plan
immediately upon employment with the City, and they are vested in the plan after ten years of service. The plan is administered
by a board of Trustees.
Contributions
The City's actuarially determined contribution rate per the October 1, 2018 actuarial valuation. Employees must contribute 3% of
pensionable earnings prior to October 29, 2018, 4% of pensionable earnings for the period October 29, 2018 through September 29,
2019, and 5% of pensionable earnings thereafter. Administrative costs are deducted from the net position of the plan. Contributions
from the State received under Florida State Statutes 175 and 185 amounted to $0 in 2020 and were recorded as revenue and
expenditures in the general fund.
Benefits Provided
The plan provides retirement, disability, and pre -retirement death benefits. Normal retirement is defined as the attainment of age 55
and 10 years of service, or 20 years of service, regardless of age. The normal retirement benefit is the number of years of credited
service prior to October 1, 2002 multiplied by 2.25%, and the number of years of credited service after October 1, 2002 multiplied by
3%, and multiplied by the average final monthly compensation. Early retirement is defined as attainment of age 50 and 10 years of
service; however, the early retirement benefit is reduced by 3% for each year before the normal retirement date. Employees are 50%
vested after five years of service, increasing at the rate of 10% per year, up to 100% vesting after 10 years of service. Disability
benefits are the larger of the basic pension formula or 42% of average earnings for service connected disabilities. For non -service
connected disabilities, benefits are the larger of the basic pension formula or 25% of average earnings, and require 10 years of
service. Disability pension is offset as necessary to preclude the total of the participant's worker's compensation, disability pension,
and other City -financed disability or salary continuation benefit (excluding social security benefits) from exceeding average earnings.
Pre -retirement death benefits for vested members are the vested portion of the basic pension formula, reduced for payment prior to
normal retirement age (payable for 10 years certain to the beneficiary of a vested participant). For non -vested participants, the
benefit is the return of accumulated employee contributions.
Plan Membership
At September 30, 2020 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 19
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 16
Active Plan Members 72
107
Page168
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2020, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability (asset) of
the sponsor on September 30, 2020 were as follows:
Total Pension Liability $ 20,888,384
Plan Fiduciary Net Position (23,237,027)
Sponsor's Net Pension Liability (Asset) $ (2,348,643)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 111.24%
* does not include Share Plan balances or excess chapter 175/185 contributions
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2018, updated September 30, 2020 using
the following actuarial assumptions:
Inflation 2.77%
Salary Increases 5.50%
Investment Rate of Return 7.00%
Mortality rates were based on the sex -distinct rates set forth in the RP-2000 Blue Collar Mortality Table, with full generational
improvements in mortality using Scale BB.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation)
are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2020 are summarized in the following table:
Asset Class
Core Bonds
Core Plus
U.S. Large Cap Equity
U.S. Small Cap Equity
Non-U.S. Equity
Core real estate
Total
Target Allocation
15%
15%
34%
11%
15%
10%
100%
Long Term
Expected Real Rate
of Return
1.60%
2.10%
4.60%
5.50%
6.70%
5.00%
Page169
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Discount rate
The discount rate used to measure the total pension liability was 7%. The projection of cash flows used to determine the discount
rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be
made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Liability
Position
Net Pension Liability
(a)
(b)
(a) - (b)
Balance at September 30, 2019 $
18,985,282
$ 20,217,453
$ (1,232,171)
Changes Due to:
Service Cost
1,048,755
-
1,048,755
Expected interest growth
1,300,909
1,438,396
(137,487)
Unexpected investment income
-
907,675
(907,675)
Demographic experience
-
-
Employer contributions
-
943,063
(943,063)
Employee contributions
-
238,416
(238,416)
Benefit payments and refunds
(446,562)
(446,562)
-
Administrative expenses
-
(61,414)
61,414
Assumption changes
-
-
-
Balance at September 30, 2020 $
20,888,384
$ 23,237,027
$ (2,348,643)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Current Discount
1 % Decrease
Rate
1 % Increase
6.00%
7.00%
8.00%
Police Pension Net Pension Liability (Asset) $
665,844
$ (2,348,643)
$ (4,802,171)
Deferred outflows and inflows of resources
For the year ended September 30, 2020 the City will recognize
a pension expense of $594,569. On September 30, 2020 the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of
Deferred Inflows of
Resources
Resources
Differences between expected and actual experience
$ -
$ 721,796
Changes of assumptions
1,523,224
-
Net difference between projected and actual earnings on
pension plan
investments
-
951,094
$ 1,523,224
$ 1,672,890
Page170
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended September 30:
2021 $
(99,385)
2022
79,987
2023
90,489
2024
(128, 345)
2025
(86,367)
Thereafter
(6,045)
Deferred Retirement Option Program (DROP)
DROP is available to participants who have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per annum. The Police DROP balance as of
September 30, 2020 is $127,712.
Firefighters' Retirement
The firefighters' defined benefit pension plan is a local law, single employer, defined benefit pension plans as defined under
Florida Statutes, Chapters 175 and 185, which covers all full time and volunteer firefighters employed by the City. Employees are
eligible to participate in the plan immediately upon employment with the City, and they are vested in the plan after ten years of
service.
The plan is administered by a board of Trustees.
Contributions
The City's actuarially determined contribution rate per the October 1, 2018 actuarial valuation. Employees must contribute 4% of
pensionable earnings. Administrative costs are deducted from the net position of the plan. Contributions from the State received
under Florida State Statutes 175 and 185 amounted to $0 in 2020 and were recorded as revenue and expenditures in the general
fund.
Benefits Provided
The plan provides retirement, disability, and pre -retirement death benefits. Normal retirement is defined as the attainment of age 55
and 10 years of service, or 20 years of service, regardless of age. The normal retirement benefit is the number of years of credited
service prior to October 1, 2002 multiplied by 2.25%, and the number of years of credited service after October 1, 2002 multiplied by
3%, and multiplied by the average final monthly compensation. Volunteer firefighters earn a minimum benefit of $5 for each year of
service. Early retirement is defined as attainment of age 50 and 10 years of service; however, the early retirement benefit is reduced
by 3% for each year before the normal retirement date. Employees are 50% vested after five years of service, increasing at the rate
of 10% per year, up to 100% vesting after 10 years of service. Disability benefits are the larger of the basic pension formula or 42%
of average earnings for service connected disabilities. For non -service connected disabilities, benefits are the larger of the basic
pension formula or 25% of average earnings, and require 10 years of service. Disability pension is offset as necessary to preclude
the total of the participant's worker's compensation, disability pension, and other City -financed disability or salary continuation benefit
(excluding social security benefits) from exceeding average earnings. Pre -retirement death benefits for vested members are the
vested portion of the basic pension formula, reduced for payment prior to normal retirement age (payable for 10 years certain to the
beneficiary of a vested participant). For non -vested participants, the benefit is the return of accumulated employee contributions.
Page171
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Plan Membership
At September 30, 2020 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 3
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 62
Active Plan Members 72
137
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2020, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability (asset) of
the sponsor on September 30, 2020 were as follows:
Total Pension Liability $ 20,734,056
Plan Fiduciary Net Position (22,771,575)
Sponsor's Net Pension Liability (Asset) $ (2,037,519)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 109.83%
* does not include Share Plan balances or excess chapter 175/185 contributions
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2018, updated September 30, 2020 using
the following actuarial assumptions:
Inflation 2.77%
Salary Increases 5.50%
Investment Rate of Return 7.00%
Mortality rates were based on the sex -distinct rates set forth in the RP-2000 Combined Mortality Table, with full generational
improvements in mortality using Scale BB.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation)
are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Page172
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2020 are summarized in the following table:
Asset Class
Core Bonds
Core Plus
U.S. Large Cap Equity
U.S. Small Cap Equity
Non-U.S. Equity
Core real estate
Total
Target Allocation
15%
15%
34%
11%
15%
10%
100%
Long Term
Expected Real Rate
of Return
1.60%
2.10%
4.60%
5.50%
6.70%
5.00%
Discount rate
The discount rate used to measure the total pension liability was 7%. The projection of cash flows used to determine the discount
rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be
made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Balance at September 30, 2019
Changes Due to:
Service Cost
Expected interest growth
Unexpected investment income
Demographic experience
Employer contributions
Employee contributions
Benefit payments and refunds
Administrative expenses
Assumption changes
Balance at September 30, 2020
Increase (Decrease)
Total Pension Plan Fiduciary Net
Liability Position Net Pension Liability
(a) (b) (a) - (b)
$ 18,435,970 $ 18,988,865 $ (552,895)
1,313,842
-
1,313,842
1,272,336
1,381,370
(109,034)
-
885,731
(885,731)
-
1,649,080
(1,649,080)
-
220,098
(220,098)
(288,092)
(288,092)
-
-
(65,477)
65,477
$ 20,734,056 $
22,771,575 $
(2,037,519)
Page173
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Current Discount
1 % Decrease Rate 1 % Increase
6.00% 7.00% 8.00%
Fire Pension Net Pension Liability (Asset) $ 1,111,994 $ (2,037,519) $ (4,585,386)
Deferred outflows and inflows of resources
For the year ended September 30, 2020 the City will recognize a pension expense of $1,172,655. On September 30, 2020 the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual experience $ 278,443 $ 290,169
Changes of assumptions 2,245,129 -
Net difference between projected and actual earnings on pension plan
investments - 924,194
$ 2,523,572 $ 1,214,363
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended September 30
2021
$ 156,468
2022
314,729
2023
326,525
2024
220,437
2025
241,257
Thereafter
49,793
Deferred Retirement Option Program (DROP)
DROP is available to participants who have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per annum. The Fire DROP balance as of
September 30, 2020 is $0.
General Employee Defined Contribution Pension Plan
The defined Contribution Pension Plan for General Employees of the City of Clermont was established October 1, 1985, as
defined in Chapter 16, Article IV, of the Clermont Code, and is available to all permanent general employees of the City, once
they have completed one year of employment. Employees are fully vested in the plan after ten years of service.
In a defined contribution plan, benefits depend solely on amounts contributed to the plan, plus investment earnings.
Contributions for, and interest forfeited by, employees who terminate employment before five years of service are used to reduce
the City's current period contributions.
Covered payroll for this Plan for fiscal year 2020 was $8,590,053; the City's total payroll for City employees was $19,973,032.
Page174
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
The City contributes annually to the pension account of each active participant an amount equal to ten percent (10%) of the
employee's annual compensation. No contribution is required by employees. The City of Clermont City Council adopted and may
amend plan provision by resolution.
The actual contribution made by the City for fiscal year 2020 was $858,493.
Aggregate Amounts of All Pension Plans
The aggregate amounts for all of the City's defined benefit pension plans at September 30, 2020 are as follows:
Governmental Activities
Net Pension
Asset (Liability) Deferred Inflows Deferred Outflows Expense
General Employees Pension Plan $ (31,475) $ - $ 1,282 $ (3,912)
Police Pension Plan 2,348,643 (1,672,890) 1,523,224 594,569
Firefighters Pension Plan 2,037,519 (1,214,362) 2,523,572 1,172,654
$ 4,354,687 $ (2,887,252) $ 4,048,078 $ 1,763,311
Individual Fiduciary Fund Statements
Individual statements of net position for the four plans included in the City of Clermont fiduciary funds are as follows:
City of Clermont, Florida
Individual Statements of Fiduciary Net Position
September 30, 2020
Assets:
Cash and cash equivalents
Investments:
U.S. Government& other debt securities
Equities
Total Investments
Total assets
Liabilities:
Refunds payable and other
Total liabilities
General Employees
Police
Officers
Firefighters
Total
Defined Defined
Pension
Pension
Employee
Benefit Contribution
Trust
Trust
Pension Funds
$ 2,188 $ - $
742,373
$ 1,126,722
$ 1,871,283
76,329 - 8,538,692 8,245,383 16,860,404
195,063 9,714,707 15,497,786 14,429,918 39,837,474
271,392 9,714,707 24,036,478 22,675,301 56,697,878
273,580 9,714,707 24,778,851 23,802,023 58,569,161
Net Position Restricted for Pensions $ 273,580 $ 9,714,707 $ 24,778,851 $ 23,802,023 $ 58,569,161
Page175
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 10 RETIREMENT PLANS (CONTINUED)
Individual statements of the changes in fiduciary net position are as follows:
City of Clermont, Florida
Individual Statements of Changes in Fiduciary Net Position
Year Ended September 30, 2020
General Employees
Police
Officers
Firefighters
Total
Defined
Defined
Pension
Pension
Employee
Benefit
Contribution
Trust
Trust
Pension Funds
Additions:
Contributions:
Employer
$ 22,036
$ 858,493
$ 943,066
$ 1,649,080
$ 3,472,675
Plan members
-
-
238,434
220,098
458,532
State
-
-
-
-
-
Total contributions
22,036
858,493
1,181,500
1,869,178
3,931,207
Investment earnings:
Net increase (decrease) in fair value of
investments
16,320 947,625 2,490,535
2,370,484
5,824,964
Investment expense
- - (5,000)
(2,500)
(7,500)
Total net investment earnings
16,320 947,625 2,485,535
2,367,984
5,817,464
Total additions
38,356 1,806,118 3,667,035
4,237,162
9,748,671
Deductions:
Benefits/distributions
42,156
2,129,605
470,626
417,199
3,059,586
Administrative expenses
5,271
9,577
56,414
62,977
134,239
Total deductions
47,427
2,139,182
527,040
480,176
3,193,825
Change in Net Position
(9,071)
(333,064)
3,139,995
3,756,986
6,554,846
Net Position Restricted for Pensions
Beginning of Year
282,651
10,047,771
21,638,856
20,045,037
52,014,315
End of Year
$ 273,580
$ 9,714,707
$ 24,778,851
$ 23,802,023
$ 58,569,161
NOTE 11 OTHER POST EMPLOYMENT BENEFITS
In accordance with Florida Statutes Section 112.0801, the City makes continued group health and dental insurance through the
city's current provider available to retirees and eligible dependents provided certain service requirements and normal age
retirement requirements have been met. This plan is a single employer plan. The City is self -insured with respect to these
benefits and provides an explicit subsidy for coverage to retirees and their spouses based on the coverage selected. This plan
does not issue stand-alone financial statements.
As of October 1, 2018, the valuation date, there were 346 active employees and 11 inactive employees currently receiving
benefits. The OPEB liability of $12,553,256 was measured as of September 30, 2020 and was determined by the actuarial
valuation. The covered payroll was $19,075,627, and the ratio of Net OPEB liability as a percentage of covered payroll was
65.81 %.
Page176
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 11 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Summary of Actuarial Methods & Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability
of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer
are subject to continual revision as actual results are compared with past expectations and new estimates are made about the
future.
The Other Postemployment Benefits Liability and Related Ratios Schedule, immediately following the notes to the financial
statements as required supplementary information, presents multi -year trend information about whether the actuarial value of the
plan assets is increasing or decreasing over time. The schedule includes one year.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities
and the actuarial value of assets, consistent with the long-term perspective of the calculations.
The Total liability was determined using the following actuarial assumptions and other inputs, applied to all periods include in the
measurement unless otherwise specified:
Initial Health Care Cost Trend Rate
Ultimate Health Care Cost Trend Rate
Fiscal Year the Ultimate Rate is Reached
Additional Information
Valuation Date
Actuarial Cost Method
Discount Rate*
Inflation Rate
Salary Rate Increase
Funded Ratio (Fiduciary Net Position as a percentage of Total OPEB Liability)
Covered Payroll
Net OPEB Liability as a Percentage of Covered Payroll
8.50%
5.00%
Fiscal year 2029
October 1, 2018
Entry Age Normal
2.66%
0.00%
2%
NA
19,075,627
65.81 %
* The discount rate was based on the index provided by Bond Buyer 20-Bond General Obligation Index
based on the 20 year AA municipal bond rate as of September 30, 2019.
Page177
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 11 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Below are the details regarding the Total OPEB liability for the measurement period from October 1, 2019, to September 30,
2020.
Total OPEB
Liability
Balance as of9/30/2019
$ 11,746,208
Changes for the year:
Service Cost
740,666
Interest
309,219
Difference Between Expected & Actual Experience
-
Changes of Assumptions and Other Inputs
Benefit Payments(')
(242,837)
Other Changes
-
Net Changes
$ 807,048
Balance as of 9/30/2020
$ 12,553,256
(1) Includes the Implicit Rate Subsidy.
The following table presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is 1 percentage point lower or 1 percentage higher than the current discount rate:
Decrease Discount Rate Increase
1.66% 2.66% 3.66%
Total OPEB Liability $ 14,895,654 $ 12,553,256 $ 10,677,100
The following presents the total OPEB liability of the city, as well as what the City's OPEB liability would be if it were calculated
using healthcare trend rates that are 1 percentage point lower and 1 percentage point higher than the current healthcare cost
trend rates:
Decrease Health Care Increase
1% Trend 1%
Total OPEB Liability $ 10,393,549 $ 12,553,256 $ 15,275,896
For the fiscal year ended September 30, 2020, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Difference between expected and actual experience
Changes of assumptions
Total
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 748,458 $ -
1,587,222 391,191
$ 2,335,680 $ 391,191
Page178
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 11 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Amounts reported as deferred outflows or resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expenses as follows:
Fiscal Year Ending September 30,
2021
$ 333,081
2022
333,081
2023
333,081
2024
333,081
2025
333,081
Thereafter
279,084
Postemployment benefits (OPEB's)
The City provides optional postemployment healthcare and dental insurance coverage to eligible individuals.
Eligible individuals - Employees of the City who are eligible for retirement or disability retirement under the City's retirement plans
may elect to participate in the City -sponsored insurance plans (healthcare and dental) at their cost.
Retiree monthly premiums for postemployment insurance coverage - retirees must pay monthly contributions in accordance with
City Resolution #2013-06 based upon plan costs as determined by the City in conjunction with insurance carriers. Failure to pay
insurance premiums will result in termination of insurance coverage without the ability to reinstate such coverage.
NOTE 12 RISK MANAGEMENT
During fiscal year 1990, the City established an internal service fund to account for its uninsured risk of loss for employee
medical and dental coverage. Under this program, the fund provides coverage for the first $181,500 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 $4,895,468.
There has been no reduction in insurance coverage from that carried in the prior year. Claims provided have not exceeded
insurance coverage in any of the past three fiscal years.
The general, water, sewer, sanitation and stormwater funds participate in the program and make payments to the internal service
fund based on the number of employees budgeted in each fund.
The claims liability of $206,017 represents claims processed through October 2020 which were applicable to the current fiscal
year and any additional claims are deemed immaterial. Changes to the current claims liability are as follows:
2020 2019
Claims Liabilities, beginning of year $ 251,597 $ 223,114
Incurred Claims 5,615,898 4,489,860
Payments on Claims (5,661,478) (4,461,377)
Claims Liabilities, end of year $ 206,017 $ 251,597
Page179
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 13 COMMITMENTS AND CONTINGENCIES
Litigation
The City is engaged in various liability claims incidental to the conduct of its general government operations at September 30,
2020. While the ultimate outcome of the litigation cannot be determined at this time, management believes that any amounts not
covered by insurance, if any, resulting from these lawsuits would not materially affect the financial position of the City.
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions;
and natural disasters for which the City carries commercial insurance. The City has obtained excess insurance coverage with
varying retentions and limits to further limit exposure to large losses. There have been no significant reductions in insurance
coverage from the prior year and settlements have not exceeded insurance coverage during the past three years.
NOTE 14 FUND BALANCES
The City classifies the components of fund balance based on the classifications described below:
Nonspendable
Nonspendable funds include fund balance amounts that are (a) not in spendable form or (b) legally or contractually required to
be maintained intact.
Spendable Fund Balance
Restricted includes fund balance amounts that can be spent only for specific purposes stipulated by (a) external resource
providers such as creditors (by debt covenants), grantors, contributors, or laws and regulations of other governments; or (b)
imposed by law through constitutional provisions or enabling legislation.
Committed includes fund balance amounts that can be used only for the specific purposes determined by formal action of the
City Council, the City's highest level of decision making authority, with formal action occurring prior to the fiscal year end.
Commitments may be changed or lifted only by the City Council taking the same formal action (Resolution) that imposed the
constraint originally.
Assigned includes spendable fund balance amounts that are intended to be used for specific purposes that are neither
considered restricted or committed. The City Council is authorized to assign amounts for a specific purpose.
Page180
City of Clermont, Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2020
NOTE 14 FUND BALANCES (CONTINUED)
Unassigned includes residual positive fund balance within the General Fund which has not been classified within the other above
mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures
exceed amounts restricted, committed, or assigned for those specific purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless
there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when
expenditures are made.
At September 30, 2020, the City's governmental fund balances were as follows:
Infrastructure
Other
Capital
Special
Governmental
General Fund
Projects
Revenue Fund
Funds
Total
Fund Balances
Nonspendable
Inventory/prepaids
$ 356,125
$
$
$ 9,206
$ 365,331
Spendable
Restricted for:
Police
180,426
973,502
1,153,928
Fire
-
1,559,271
1,559,271
Transportation
24,742
24,742
Tree replacement
153,743
153,743
Building Services
-
1,837,195
1,837,195
Culture and recreation
2,110,551
2,110,551
Community redevelopment
468,672
468,672
Infrastructure
1,922,956
-
1,922,956
Debt service
-
1,807,978
1,807,978
Cemetery
1,431,065
1,431,065
Assigned for:
Capital projects
-
15,475,555
-
15,475,555
Police/fire donations
3,362
3,362
Subsequentyear expenditures
3,223,530
-
3,223,530
Unassigned
7,859,532
7,859,532
$ 11,801,460
$15,475,555
$ 1,922,956
$ 10,197,440
$39,397,411
Page181
Page182
REQUIRED SUPPLEMENTAL INFORMATION
Page 183
Page 184
City of Clermont, Clermont, Florida
Schedule of Changes in Net OPEB Liability and Related Ratios
Year Ended September 30, 2020
Total OPEB Liability
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions
Benefit Payments (2)
Other changes
Net change in total OPEB liability
Total OPEB liability, beginning (1)
Total OPEB liability, ending
Plan fiduciary net position as a percentage of total OPEB liability
Covered payroll
9/30/2020
9/30/2019
9/30/2018
$ 740,666 $
721,475 $
496,316
309,219
288,724
312,754
-
181,592
-
2,106,772
(662,223)
(242,837)
(236,545)
(109,600)
807,048 3,062,018 37,247
11,746,208 8,684,190 8,646,943
$ 12,553,256 $ 11,746,208 $ 8,684,190
0.00% 0.00% 0.00%
$ 19,075,627 $ 18,701,595 $ 14,293,247
Net OPEB liability as a percentage of covered payroll 65.81% 62.81% 60.76%
Notes to Schedule:
(1) Fiscal Year 2016 results calculated one year later using a 3.35% Discount Rate index as of 9/30/2017.
(2) Includes the Implicit Rate Subsidy.
Page185
City of Clermont, Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
Year Ended September 30, 2020
Total Pension Liability
Service Cost
Interest
Differences Between Expected and Actual
Experience
Changes of Assumptions
Benefit Payments, including refunds of employee
contributions
Net Change in Total Pension Liability
Total Pension Liability -beginning
Total Pension Liability -ending (a)
Plan Fiduciary Net Position
Contributions -employer
Contributions -state
Contributions -employee
Net Investment Income
Benefit Payments, including refunds of employee
contributions
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - beginning
Plan Fiduciary Net Position - ending (b)
Net Pension Liability - ending (a)- (b)
Plan Fiduciary Net Position as a Percentage of Total
Pension Liability
Covered Payroll
Net Pension Liability as a Percentage of Covered
Payroll
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
21,619
21,414
23,435
22,569
22,224
29,060
28,229
-
33,131
-
17,118
12,118
40,676
-
-
28,462
31,161
(10,549)
(49,982)
(53,410)
(51,013)
(57,338)
(61,435)
(63,484)
(56,412)
(28,363)
1,135
(27,578)
10,811
4,068
(4,297)
(28,183)
333,418
332,283
359,861
349,050
344,982
349,279
377,462
$
305,055
$
333,418
$
332,283
$
359,861
$
349,050
$
344,982
$
349,279
11,018
11,018
8,767
8,767
-
-
-
16,320
14,396
24,889
44,469
29,829
2,613
40,560
(42,156)
(53,410)
(57,338)
(57,338)
(61,435)
(63,484)
(66,212)
(5,271)
(1,597)
(1,681)
(5,457)
(1,757)
(6,508)
(3,136)
(20,089)
(29,593)
(25,363)
(9,559)
(33,363)
(67,379)
(28,788)
293,669
323,262
348,625
358,184
391,547
458,926
487,714
$
273,580
$
293,669
$
323,262
$
348,625
$
358,184
$
391,547
$
458,926
$
31,475
$
39,749
$
9,021
$
11,236
$
(9,134)
$
(46,565)
$
(109,647)
89.68%
88.08%
97.29%
96.88%
102.62%
113.50%
131.39%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Page186
City of Clermont, Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Police
Year Ended September 30, 2020
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
Total Pension Liability
Service Cost $
1,048,755
$ 1,048,755
$ 941,659
$ 941,659
$ 836,661
$ 560,680 $
524,531
Interest
1,300,909
1,290,431
1,170,292
1,049,633
749,652
860,884
723,246
Changes in Excess State Money
-
-
-
-
-
-
-
Diiferences Between Expected and Actual
Experience
(610,614)
(108,041)
(204,387)
(211,987)
(162,697)
Changes of Assumptions
576,133
3,155,202
Benefit Payments, including refunds of employee
contributions
(446,562)
(403,441)
(381,207)
(640,378)
(342,697)
(298,559)
(532,943)
Assumption changes
-
1,209
-
-
-
-
-
NetChange in Total Pension Liability
1,903,102
1,326,340
1,622,703
1,722,660
4,186,831
960,308
714,834
Total Pension Liability -beginning
18,985,282
17,658,942
16,036,239
14,313,579
10,126,748
9,166,440
8,451,606
Total Pension Liability -ending (a) $
20,888,384
$ 18,985,282
$ 17,658,942
$ 16,036,239
$ 14,313,579
$ 10,126,748 $
9,166,440
Plan Fiduciary Net Position
Contributions -employer
943,063
891,380
944,540
756,302
632,411
281,722
411,953
Contributions -state
-
-
-
-
-
240,486
217,653
Contributions -employee
238,416
175,526
120,269
116,332
108,806
99,188
95,733
Net Investment Income
2,346,071
1,330,033
1,245,288
1,908,188
1,115,432
(14,779)
1,043,670
Benefit Payments, including refunds of employee
contributions
(446,562)
(403,441)
(381,207)
(640,378)
(342,697)
(298,559)
(334,599)
Administrative Expense
(61,414)
(102,202)
(51,400)
(49,645)
(30,651)
(54,494)
(31,851)
Other
-
-
-
-
-
-
-
Net Change in Plan Fiduciary Net Position
3,019,574
1,891,296
1,877,490
2,090,799
1,483,301
253,564
1,402,559
Plan Fiduciary Net Position - beginning
20,217,453
18,326,157
16,448,667
14,357,868
12,874,567
12,621,003
11,218,444
Plan Fiduciary Net Position - ending (b) $
23,237,027
$ 20,217,453
$ 18,326,157
$ 16,448,667
$ 14,357,868
$ 12,874,567
$ 12,621,003
Net Pension Liability - ending (a) - (b) $
(2,348,643)
$ (1,232,171)
$ (667,215)
$ (412,428)
$ (44,289)
$ (2,747,819)
$ (3,454,563)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability
111.24%
106.49%
103.78%
102.57%
100.31 %
127.13%
137.69%
Covered Payroll $
3,813,876
$ 3,813,876
$ 3,366,613
$ 3,366,613
$ 3,366,613
$ 3,108,552
$ 2,424,191
Net Pension Liability as a Percentage of
Covered Payroll
-61.58%
-32.31%
-19.82%
-12.25%
-1.32%
-88.40%
-142.50%
Page187
City of Clermont, Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
Year Ended September 30, 2020
Total Pension Liability
Service Cost
Interest
Changes in Excess State Money
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, including refunds of employee
Net Change in Total Pension Liability
Total Pension Liability -beginning
Total Pension Liability -ending (a)
Plan Fiduciary Net Position
Contributions -employer
Contributions -state
Contributions -employee
Net Investment Income
Benefit Payments, including refunds of employee
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - beginning
Plan Fiduciary Net Position - ending (b)
Net Pension Liability - ending (a) - (b)
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
$ 1,313,842
$ 1,313,842
$ 1,025,516
$ 1,025,516
$ 784,710
$ 524,325
$ 596,543
1,272,336
1,141,847
996,576
782,004
515,458
553,753
530,089
(158,435)
(121,553)
633,143
(208,729)
(67,286)
1,079,623
634,356
2,505,255
-
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(81,466)
2,298,086
3,277,172
1,875,419
3,070,506
3,595,370
1,009,847
1,045,166
18,435,970
15,158,798
13,283,379
10,212,873
6,617,503
5,607,656
4,562,490
$ 20,734,056
$ 18,435,970
$ 15,158,798
$ 13,283,379
$ 10,212,873
$ 6,617,503
$ 5,607,656
1,649,080
1,585,514
1,278,757
797,699
491,818
646,065
438,902
-
-
-
-
-
181,292
175,931
220,098
231,935
200,118
238,785
279,064
141,632
86,520
2,267,101
1,240,965
1,063,078
1,599,687
858,136
(32,699)
704,467
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(756)
(65,477)
(98,170)
(35,839)
(49,761)
(28,346)
(40,885)
(24,109)
3,782,710
2,860,539
2,480,994
2,581,897
1,599,348
894,460
1,380,955
18,988,865
16,128,326
13,647,332
11,065,435
9,466,087
8,571,627
7,190,672
$ 22,771,575
$ 18,988,865
$ 16,128,326
$ 13,647,332
$ 11,065,435
$ 9,466,087
$ 8,571,627
$ (2,037,519) $ (552,895) $ (969,528) $ (363,953) $ (852,562) $ (2,848,584) $ (2,963,971)
Plan Fiduciary Net Position as a Percentage of Total 109.83% 103.00% 106.40% 102.74% 108.35% 143.05% 152.86%
Covered Payroll $ 4,438,530 $ 4,438,530 $ 3,602,745 $ 3,602,745 $ 2,798,049 $ 2,798,049 $ 2,798,049
Net Pension Liability as Percentage of Covered Payroll-45.91%-12.46%-26.91%-10.10%-30.47%-101.81%-105.93%
Page188
City of Clermont, Clermont, Florida
Schedule of Contributions and Investment Returns — General Employees
Year Ended September 30, 2020
Actuarially Determined Contribution
Contributions in Relation to the
Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of
Covered Payroll
9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
$ 11,018 $ 11,018 $ 81767 $ 8,767 $ - $ - $ -
11,018 11,018 8,767 8,767
N/A N/A N/A N/A N/A N/A N/A
Valuation Date 10/1/2018
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported
Methods and assumptions used to determine contribution rates
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, open
Remaining Amortization Period
30 years
Asset Valuation Method
Market Value
Inflation
2.77%
Salary Increases
N/A
Interest Rate
7% per year, compounded annually, net of investment expenses
Schedule of Investment Returns 9130/2020 9/30/2019 9/30/2018 913012017 9/3012016
Annual money -weighted rate of return, net of
investment expenses 4.23% 4.23% 7.00% 4.08% 4.08%
9/30/2015 9/30/2014
5.48% 8.55%
Page189
City of Clermont, Clermont, Florida
Schedule of Contributions and Investment Returns — Police
Year Ended September 30, 2020
Actuarially Determined Contribution
Contributions in Relation to the
Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of
Covered Payroll
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
$ 985,611 $
936,834 $
905,229 $
875,593 $
640,139 $
583,559 $
629,606
943,063
891,380
944,540
756,302
632,411
522,208
670,126
$ 42,548 $
45,454 $
(39,311) $
119,291 $
7,728 $
61,351 $
(40,520)
$ 3,813,876 $
3,813,876 $
3,366,613 $
3,366,613 $
3,366,613 $
3,108,552 $
3,108,552
24.73%
23.37%
28.06%
22.46%
18.78%
16.80%
21.56%
Valuation Date 10/1/2018
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Aggregate
Amortization Method Level Percentage of Pay, open
Remaining Amortization Period 30 Years
AssetValuation Method Market Value
Salary Increases 5.50% per annum
Interest Rate 7% per annum (2.77% per annum is attributable to long-term inflation); this rate was used to discount all future benefit payments
Retirement 20% of eligible participants are assumed to retire at each of ages 52 through 54 and 100% of eligible participants are assumed to retire at normal retirement age
Other Decrements Assumed employment termination is based on age and ranges from 5.00% atage 20 to 0.00% atage 50
Assumed disability is based on age and ranges from 0.03% atage 20 to 0.18% at age 50; 75% of disabilities are assumed to be service -connected
Mortality Sex -distinct rates set forth in the RP-2000 Blue Collar Mortality Table, with full generational improvements in mortality using Scale BB
Non -investment Expenses Liabilities have been loaded by 1.50% to account for non -investment expenses
Future Contributions Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns 9/30/2020 9130/2019 9130/2018 9/30/2017 9130/2016 9/3012015
Annual money -weighted rate of return,
net of investment expenses 4.23% 4.23% 7.00% 4.08% 4.08% 5.48%
9/30/2014
8.55%
Page190
City of Clermont, Clermont, Florida
Schedule of Contributions and Investment Returns — Fire
Year Ended September 30, 2020
Actuarially Determined Contribution
Contributions in Relation to the
Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of
Covered Payroll
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
$ 1,648,674 $
1,585,514 $
1,284,255 $
1,113,095 $
647,476 $
603,000 $
614,833
1,649,080
1,585,514
1,278,757
797,699
491,818
827,357
668,800
$ (406) $
- $
5,498 $
315,396 $
155,658 $
(224,357) $
(53,967)
4,438,530
4,438,530
3,602,745
3,602,745
2,798,049
2,798,049
2,798,049
37.15%
35.72%
35.49%
22.14%
17.58%
29.57%
23.90%
Valuation Date 10/1/2018
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, Open
Remaining Amortization Period
30 Years
AssetValuation Method
Market Value
Salary Increases
5.50% per annum
Interest Rate
7% per annum (2.77% per annum is attributable to long-term inflation); this rate was used to discount all future benefit payments
Retirement
20% of eligible participants are assumed to retire ateach of ages 52 through 54 and 100% ofeligible participants are assumed to retire atnormal retirementage
Other Decrements
Assumed employment termination is based on age and ranges from 4.30% at age 20 to 0.00% at age 50
Assumed disability is based on age and ranges from 0.03% at age 20 to 0.18% at age 50; 75% of disabilities are assumed to be service -connected
Mortality
Sex -distinct rates setforth in the RP-2000 Blue Collar Mortality Table, with full generational improvements in mortality using Scale BB
Non -investment Expenses
Liabilities have been loaded by 1.75% to account for non -investment expenses
Future Contributions
Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns
9/30/2020 9130/2019 9/30/2018 9/30/2017 9/30/2016 9/3012015 9130/2014
Annual money -weighted rate of return,
net of investment expenses
4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page191
Page192
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page 193
Page 194
City of Clermont, Clermont, Florida
Major Governmental Funds
Year Ended September 30, 2020
Capital Projects Funds
Capital projects funds are used to account for financial resources that are restricted, committed, or assigned to expenditures for
capital outlays, including the acquisition or construction of capital facilities and other capital assets.
Capital Projects Fund This fund was established to account for financial resources
segregated for the acquisition or construction of major capital projects.
Page195
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects Fund
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original Final
Revenues:
Intergovernmental revenues
$ 950,000 $ 1,025,000
$ 625,000
$ (400,000)
Investment earnings
400,000 400,000
196,202
(203,798)
Miscellaneous
- -
34,082
34,082
Total revenues
1,350,000 1,425,000
855,284
(569,716)
Expenditures:
Current:
General government
7,000
7,000
956
6,044
Physical environment
-
-
7,550
(7,550)
Economic environment
-
-
1,000
(1,000)
Capital Outlay:
Physical environment
6,981,000
7,550,951
114,432
7,436,519
Economic environment
5,870,000
6,695,300
3,955,742
2,739,558
Total expenditures
12,858,000
14,253,251
4,079,680
10,173,571
Excess (deficiency) of revenues over expenditures
(11,508,000)
(12,828,251)
(3,224,396)
9,603,855
Net Change in Fund Balance
(11,508,000)
(12,828,251)
(3,224,396)
9,603,855
Fund Balances - beginning
18,699,951
18,699,951
18,699,951
-
FundBalances- ending
$ 7,191,951 $
5,871,700 $
15,475,555 $
9,603,855
Page196
City of Clermont, Clermont, Florida
Other Governmental Funds
Year Ended September 30, 2020
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted, committed, or assigned to expenditures
for particular purposes.
Recreation Impact Fees Fund
Police Impact Fees Fund
Fire Impact Fee Fund
Building Services Fund
Fire Inspection Fund
Community Redevelopment Fund
Cemetery Fund
This fund was established to account for recreation impact fees
collected from new developments constructed in the City.
This fund was established to account for police impact fees collected
from new developments constructed in the City.
This fund was established to account for fire impact fees collected from
new developments constructed in the City.
This fund was established to account for the operations of the City's
building services department which are restricted for use in providing
building permitting and inspection services.
This fund was established to account for the operations of the City's
fire prevention and inspection services. Fund closed in FY2020.
This fund was established as a dependent taxing district. The
incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area.
This fund was established to account for the operations and
maintenance of the City's cemetery.
Debt Service Fund
Debt service funds are used to account for financial resources that are restricted, committed, or assigned to expenditures for
principal and interest.
Debt Service Fund
This fund was established to account for the accumulation of resources
and payment of bond principal and interest from governmental
resources.
Page197
City of Clermont, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2020
Assets:
Cash and cash equivalents
Investments
Other receivables
Prepaid costs
Total assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Total liabilities
Fund balances
Special Revenue
Recreation
Police Impact
Fire Impact
Building
Impact Fees
Fees
Fees
Services
$ 1,199,839
$ 569,880
$ 749,389 $
746,029
910,392
431,846
808,987
1,182,972
1,390
795
924
1,323
-
-
-
5,697
$ 2,111,621
$ 1,002,521
$ 1,559,300 $
1,936,021
$ 1,070 $ 29,019
1,070 29,019
$ 29 $ 49,240
- 43,889
29 93,129
Nonspendable - - - 5,697
Restricted 2,110,551 973,502 1,559,271 1,837,195
Total fund balances 2,110,551 973,502 1,559,271 1,842,892
Total liabilities and fund balances $ 2,111,621 $ 1,002,521 $ 1,559,300 $ 1,936,021
Page198
Special Revenue
Community
Total Nonmajor
Redevelopment
Total Special
Governmental
Fire Inspection Special Revenue
Cemetery
Revenue Funds
Debt Service
Funds
$ $ 284,625 $
445,852
$ 3,995,614
$ 1,767,440
$ 5,763,054
322,064
989,348
4,645,609
40,538
4,686,147
595
1,497
6,524
-
6,524
3,224
285
9,206
-
9,206
$ $ 610,508 $
1,436,982
$ 8,656,953
$ 1,807,978
$ 10,464,931
$ $ 132,486 $
2,181 $
214,025 $
$ 214,025
6,126
3,451
53,466
53,466
138,612
5,632
267,491
267,491
3,224
285
9,206
9,206
468,672
1,431,065
8,380,256
1,807,978 10,188,234
471,896
1,431,350
8,389,462
1,807,978 10,197,440
$ $ 610,508 $
1,436,982 $
8,656,953 $
1,807,978 $ 10,464,931
Page199
City of Clermont, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2020
Special Revenue
Recreation
Police Impact
Fire Impact
Building
Impact Fees
Fees
Fees
Services
Revenues:
Taxes
$
$
$ $
-
Licenses and permits
1,325,841
Intergovernmental revenues
-
Charges for services
49,370
Impact fees/special assessments
1,529,037
436,670
564,447
-
Investment earnings
23,953
12,551
18,183
26,777
Miscellaneous
-
-
-
-
Total revenues
1,552,990
449,221
582,630
1,401,988
Expenditures:
Current:
Public safety
-
108,795
98,976
1,506,487
Physical environment
-
-
-
Economic environment
-
Culture and recreation
153,506
Debt Service:
Principal
-
Interest and fiscal charges
-
-
-
-
Total expenditures
153,506
108,795
98,976
1,506,487
Excess (Deficiency) of Revenues Over Expenditures
1,399,484
340,426
483,654
(104,499)
Other Financing Uses:
Transfers in
-
-
-
9,979
Transfers out
(569,628)
(14,760)
(17,033)
Total other financing uses
(569,628)
(14,760)
-
(7,054)
Net Change in Fund Balances
829,856
325,666
483,654
(111,553)
Fund Balances - beginning
1,280,695
647,836
1,075,617
1,954,445
Fund Balances - ending
$ 2,110,551
$ 973,502
$ 1,559,271 $
1,842,892
Page1100
Special Revenue
Community
Total Nonmajor
Redevelopment
Total Special
Governmental
Fire Inspection
Special Revenue
Cemetery
Revenue Funds
Debt Service
Funds
$
$ 383,119 $
$ 383,119
$
$ 383,119
-
1,325,841
1,325,841
80,000
80,000
80,000
-
212,050
261,420
261,420
-
-
2,530,154
2,530,154
11
9,550
25,106
116,131
3,796
119,927
-
-
3,420
3,420
-
3,420
11
472,669
240,576
4,700,085
3,796
4,703,881
-
-
-
1,714,258
-
1,714,258
-
99,760
99,760
99,760
519,519
-
519,519
519,519
-
153,506
-
153,506
-
2,063,724
2,063,724
-
-
-
744,546
744,546
-
519,519
99,760
2,487,043
2,808,270
5,295,313
11
(46,850)
140,816
2,213,042
(2,804,474)
(591,432)
-
2,556
-
12,535
2,833,572
2,846,107
(45,500)
-
(646,921)
-
(646,921)
(45,500)
2,556
-
(634,386)
2,833,572
2,199,186
(45,489)
(44,294)
140,816
1,578,656
29,098
1,607,754
45,489
516,190
1,290,534
6,810,806
1,778,880
8,589,686
$
$ 471,896 $
1,431,350
$ 8,389,462
$ 1,807,978
$ 10,197,440
Page1101
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Recreation Impact Fees
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Impact fees/special assessments $
900,000 $
900,000
$ 1,529,037
$ 629,037
Investment earnings
10,000
10,000
23,953
13,953
Total revenues
910,000
910,000
1,552,990
642,990
Expenditures:
Current:
Culture and recreation
293,468
508,062
153,506
354,556
Total expenditures
293,468
508,062
153,506
354,556
Excess (deficiency) of revenues over expenditures
616,532
401,938
1,399,484
997,546
Other Financing Uses
Transfers out
(569,636)
(569,636)
(569,628) 8
Total other financing uses
(569,636)
(569,636)
(569,628) 8
Net Change in Fund Balances
46,896
(167,698)
829,856 997,554
Fund Balances - beginning
1,280,695
1,280,695
1,280,695 -
Fund Balances - ending
$ 1,327,591 $
1,112,997 $
2,110,551 $ 997,554
Page1102
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Police Impact Fees
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Impact fees/special assessments
$ 325,200 $
325,200
$ 436,670
$ 111,470
Investment earnings
6,000
6,000
12,551
6,551
Total revenues
331,200
331,200
449,221
118,021
Expenditures:
Current:
Public Safety:
Law enforcement 301,308 344,808 108,795 236,013
Total expenditures 301,308 344,808 108,795 236,013
Excess (deficiency) of revenues over expenditures 29,892 (13,608) 340,426 354,034
Other Financing Sources (Uses)
Transfers out
(14,763)
(14,763)
(14,760)
3
Total other financing sources (uses)
(14,763)
(14,763)
(14,760)
3
Net Change in Fund Balances
15,129
(28,371)
325,666
354,037
Fund Balances - beginning
647,836
647,836
647,836
-
Fund Balances - ending
$ 662,965 $
619,465 $
973,502 $
354,037
Page1103
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Impact Fees
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Impact fees/special assessments
$ 385,000 $
385,000
$ 564,447
$ 179,447
Investment earnings
6,000
6,000
18,183
12,183
Total revenues
391,000
391,000
582,630
191,630
Expenditures:
Current:
Public safety:
Fire control 24,184 320,825 98,976 221,849
Total expenditures 24,184 320,825 98,976 221,849
Excess (deficiency) of revenues over expenditures 366,816 70,175 483,654 413,479
Net Change in Fund Balances
366,816
70,175
483,654 413,479
Fund Balances - beginning
1,075,617
1,075,617
1,075,617 -
Fund Balances - ending
$ 1,442,433 $
1,145,792 $
1,559,271 $ 413,479
Page1104
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Building Services
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Licenses and permits
$ 1,175,000 $
1,175,000
$ 1,325,841
$ 150,841
Charges for services
64,000
64,000
49,370
(14,630)
Investment earnings
12,000
12,000
26,777
14,777
Total revenues
1,251,000
1,251,000
1,401,988
150,988
Expenditures:
Current:
Public safety
1,490,493
1,541,583
1,506,487
35,096
Total expenditures
1,490,493
1,541,583
1,506,487
35,096
Excess (deficiency) of revenues over expenditures
(239,493)
(290,583)
(104,499)
186,084
Other Financing Uses:
Transfers in
9,979
9,979
Transfers out
(17,033)
(17,033)
-
Total other financing sources
(17,033)
(7,054)
9,979
Net Change in Fund Balances
(239,493) (307,616)
(111,553)
196,063
Fund Balances - beginning
1,954,445 1,954,445
1,954,445
-
Fund Balances - ending
$ 1,714,952 $ 1,646,829 $
1,842,892 $
196,063
Page1105
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Inspection
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Revenues:
Investment earnings $ $ $ 11 $ 11
Total revenues 11 11
Expenditures:
Current:
Public safety
Total expenditures - -
Excess (deficiency) of revenues over expenditures 11 11
Other Financing Sources:
Transfers out (45,500) (45,500)
Total other financing sources (45,500) (45,500)
Net Change in Fund Balances - - (45,489) (45,489)
Fund Balances - beginning 45,489 45,489 45,489
Fund Balances - ending $ 45,489 $ 45,489 $ - $ (45,489)
Page1106
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Redevelopment Special Revenue
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Taxes
$ 334,793 $
383,119
$ 383,119
$ -
Intergovernmental revenues
-
-
80,000
80,000
Investment earnings
4,500
4,500
9,550
5,050
Total revenues
339,293
387,619
472,669
85,050
Expenditures:
Current:
Economic development 347,230 658,512 519,519 138,993
Total expenditures 347,230 658,512 519,519 138,993
Excess (deficiency) of revenues over expenditures
(7,937)
(270,893)
(46,850)
224,043
Other Financing Sources:
Transfers in
2,556
2,556
Total other financing sources
2,556
2,556
Net Change in Fund Balances
(7,937)
(270,893)
(44,294)
226,599
Fund Balances - beginning
516,190
516,190
516,190
-
Fund Balances - ending
$ 508,253 $
245,297 $
471,896 $
226,599
Page1107
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Cemetery
Year ended September 30, 2020
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Charges for services
$ 100,000 $
100,000
$ 212,050
$ 112,050
Investment earnings
12,000
12,000
25,106
13,106
Miscellaneous
-
-
3,420
3,420
Total revenues
112,000
112,000
240,576
128,576
Expenditures:
Current:
Physical environment
110,787
111,735
99,760
11,975
Total expenditures
110,787
111,735
99,760
11,975
Excess (deficiency) of revenues over expenditures
1,213
265
140,816
140,551
Net Change in Fund Balances
1,213
265
140,816
140,551
Fund Balances - beginning
1,290,534
1,290,534
1,290,534
-
Fund Balances - ending
$ 1,291,747 $
1,290,799 $
1,431,350 $
140,551
Page1108
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Debt Service
Year ended September 30, 2020
Revenues:
Investment earnings
Total revenues
Expenditures:
Current:
General government
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Sources:
Transfers in
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts
Original Final
Variance with
Final Budget -
Positive
Actual Amounts (Negative)
$ 7,000 $ 7,000 $ 3,796 $ (3,204)
7,000 7,000 3,796 (3,204)
500 500
500
2,063,724
2,063,724
2,063,724
-
744,544
744,544
744,546
(2)
2,808,768
2,808,768
2,808,270
498
(2,801,768)
(2,801,768)
(2,804,474)
(2,706)
2,833,562
2,833,562
2,833,572
10
2,833,562
2,833,562
2,833,572
10
31,794
31,794
29,098
(2,696)
1,778,880
1,778,880
1,778,880
$ 1,810,674 $
1,810,674 $
1,807,978 $
(2,696)
Page1109
City of Clermont, Clermont, Florida
Fiduciary Funds
Year Ended September 30, 2020
Agency funds are used to account for short-term custodial collections on resources on behalf of another individual, entity, or
government.
Pension Trust Funds
General Employees' Pension Trust Fund To account for the accumulation of resources to be used for retirement
annuity payments at the appropriate amounts and times in the future.
Resources are contributed at rates in accordance with an actuarial
study, whereas, a fixed percentage of employees' salaries is used in
determining the annual contribution to the defined contribution plan.
Police Officers' Pension Trust Fund 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 insurance premiums and the City contributes an
amount determined by an actuarial study.
Firefighters' 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 fire insurance premiums and the City contributes an
amount determined by an actuarial study.
Page1110
City of Clermont, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2020
General Employees
Police
Officers
Firefighters
Total
Defined
Defined
Pension
Pension
Employee
Benefit
Contribution
Trust
Trust
Pension Funds
Assets:
Cash and cash equivalents $
2,188
$ $
742,373 $
1,126,722
$ 1,871,283
Investments:
U.S. Government & other debt securities
76,329
-
8,538,692
8,245,383
16,860,404
Equities
195,063
9,714,707
15,497,786
14,429,918
39,837,474
Total Investments
271,392
9,714,707
24,036,478
22,675,301
56,697,878
Total assets
273,580
9,714,707
24,778,851
23,802,023
58,569,161
Liabilities:
Refunds payable and other - - - -
Total liabilities - - - - -
Net Position Restricted for Pensions $ 273,580 $ 9,714,707 $ 24,778,851 $ 23,802,023 $ 58,569,161
Page1111
City of Clermont, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2020
Additions:
Contributions:
Employer
Plan members
State
Total contributions
Investment earnings:
Net increase (decrease) in fair value of
investments
Investment expense
Total net investment earnings
Total additions
Deductions:
Benefits/distributions
Administrative expenses
Total deductions
Change in Net Position
Net Position Restricted for Pensions
Beginning of Year
End of Year
General Employees
Police
Officers Firefighters Total
Defined Defined Pension Pension Emolovee
$ 22,036 $ 858,493 $ 943,066 $ 1,649,080 $ 3,472,675
- - 238,434 220,098 458,532
16,320
947,625
2,490,535
2,370,484
5,824,964
-
-
(5,000)
(2,500)
(7,500)
16,320
947,625
2,485,535
2,367,984
5,817,464
38,356
1,806,118
3,667,035
4,237,162
9,748,671
42,156
2,129,605
470,626
417,199
3,059,586
5,271
9,577
56,414
62,977
134,239
47,427
2,139,182
527,040
480,176
3,193,825
(9,071)
(333,064)
3,139,995
3,756,986
6,554,846
$ 273,580 $ 9,714,707 $ 24,778,851 $ 23,802,023 $ 58,569,161
Page1112
STATISTICAL SECTION
Page1113
Page 1114
City of Clermont, Clermont, Florida
Statistical Section
Year Ended September 30, 2020
This part of the City of Clermont's comprehensive annual financial report presents detailed information as a context for
understanding what the information says about the government's overall financial health.
Contents
Page
Financial Trends 116
These schedules contain trend information to help the reader understand how the government's
financial performance and well-being have changed over time.
Revenue Capacity 126
These schedules contain information to help the reader assess the government's most significant
local revenue source, the property tax.
Debt Capacity 131
These schedules present information to help the reader assess the affordability of the government's
current level of outstanding debt and the government's ability to issue additional debt in the future.
Note: there are no limitations placed upon the amount of debt the City of Clermont may issue either
by the City Charter of the City's Code of Ordinances or by Florida Statutes.
Note: The City of Clermont has no general obligation bonds outstanding.
Demographic and Economic Information 138
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government's financial activities take place.
Operating Information 142
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides and
the activities it performs
Sources: Unless otherwise noted, the information in these schedules are derived from the comprehensive annual reports for the
relevant year.
Page1115
City of Clermont, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2011
2012
2013
2014
Governmental activities
Net investment in capital assets
$ 34,894
$ 36,612 $
39,950
$ 44,116
Restricted
7,381
8,876
9,490
9,918
Unrestricted
12,465
9,701
7,723
5,719
Total governmental activities net position
$ 54,740
$ 55,189 $
57,163
$ 59,753
Business -type activities
Net investment in capital assets
56,430
57,241
57,863
56,680
Restricted
9,241
9,477
9,536
10,217
Unrestricted
19,376
20,436
24,191
27,054
Total business -type activities net position
$ 85,047
$ 87,154 $
91,590
$ 93,951
Primary government
Net investment in capital assets
91,324
93,853
97,813
100,796
Restricted
16,622
18,353
19,026
20,135
Unrestricted
31,841
30,137
31,914
32,773
Total primary government net position
$ 139,787
$ 142,343 $
148,753
$ 153,704
Page1116
Fiscal Year
2015 2016 2017 2018 2019 2020
$
47,718
$
52,064
$
31,918
$
35,262
$
40,318
$
44,045
9,400
6,402
7,815
8,547
9,589
12,479
11,649
11,182
30,117
27,925
24,795
23,874
$
68,767
$
69,648
$
69,850
$
71,734
$
74,702
$
80,398
56,586
60,150
63,131
69,322
66,104
68,310
12,135
13,959
17,127
16,904
20,362
24,195
26,943
26,050
26,667
23,959
28,286
28,728
$
95,664
$
100,159
$
106,925
$
110,185
$
114,752
$
121,233
104,304
112,214
95,049
104,584
106,422
112,355
21,535
20,361
24,942
25,451
29,951
36,674
38,592
37,232
56,784
51,884
53,081
52,602
$
164,431
$
169,807
$
176,775
$
181,919
$
189,454
$
201,631
Page1117
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Human services
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type Activities:
Water
Sewer
Sanitation
Stormwater
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental Activities:
Charges for services:
General government
Public safety
Transportation/public works
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type Activities:
Charges for services:
Water
Sewer
Sanitation
Stormwater
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Fiscal Year
2011
2012
2013
2014
$ 3,643
$ 4,211
$ 3,258
$ 3,407
12,531
12,168
12,685
14,117
279
248
303
350
1,661
1,719
1,725
2,202
102
116
200
363
1,822
1,045
1,928
3,096
156
137
87
236
20,194
19,644
20,186
23,771
4,461
4,052
4,154
4,589
6,022
5,752
6,106
6,437
2,364
2,567
2,465
2,472
955
939
897
1,016
13,802
13,310
13,622
14,514
4z i*i aaF
4Z z:� am
4z 'Zz Qnu
4z qQ 9QC;
$ 1,695
$ 1,649
$ 2,117
$ 2,429
355
450
1,040
1,366
539
604
1,262
956
1,237
1,191
896
939
129
27
112
1,718
3,955
3,921
5,427
7,408
5,377
5,099
5,215
5,362
5,065
5,154
5,357
5,585
2,688
2,721
2,775
2,869
855
855
862
881
999
1,752
3,430
2,417
14,984
15,581
17,639
17,114
$ 18,939
$ 19,502
$ 23,066
$ 24,522
Page1118
Fiscal Year
$ 3,848
$ 4,157
$ 4,240
$ 2,870
$ 5,023
$ 5,678
14,326
17,381
20,297
20,306
22,104
22,733
453
788
805
2,104
863
2,470
2,094
2,185
2,009
2,255
2,387
1,843
567
209
1,197
385
532
847
4,018
Ann
5,460
nr_r_
4,491
nnn
5,752
nnn
5,954
nni
3,722
'In
4,823
4,719
5,199
5,634
6,215
6,425
6,571
6,866
6,909
6,849
7,373
7,742
3,133
2,925
2,869
3,073
3,027
3,294
1,080
1,142
1,190
1,360
1,614
1,901
15,607
A` AA Ann
15,652
0` A^ AMI
16,167
A` An ^A^
16,916
A` LA Anl
18,229
0` rr nnn
19,362
A` 11 Ann
$ 2,356
$ 2,914
$ 3,180
$ 3,874
$ 3,590
$ 3,377
1,684
1,574
1,506
1,344
1,593
1,854
1,317
1,552
2,003
1,697
1,801
2,088
1,598
1,822
1,456
2,233
2,061
3,307
498
163
309
428
625
625
7,453
8,025
8,454
9,576
9,670
11,251
5,726
6,162
6,516
6,461
6,868
7,631
5,809
6,183
6,507
6,625
6,989
7,573
2,917
2,984
3,089
3,178
3,264
3,562
905
955
1,004
1,378
1,598
1,695
276
24
-
-
2,109
1
3,219
4,026
6,906
4,535
5,316
6,575
18,852
20,334
24,022
22,177
26,144
27,037
$ 26,305
$ 28,359
$ 32,476
$ 31,753
$ 35,814
$ 38,288
Page1119
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Net(Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues and Other Changes in
Net Position
Governmental Activities:
Taxes:
Property taxes
Business taxes
Franchise taxes
Utility taxes
Intergovernmental -unrestricted
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Transfers in/out
Special item
Total governmental activities
Business -type Activities:
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Transfers in/out
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Fiscal Year
2011
2012
2013
2014
$ (16,240)
$ (15,721)
$ (14,759)
$ (16,363)
1,182
2,271
4,018
2,600
$ (15,058)
$ (13,450)
$ (10,741)
$ (13,763)
$
5,966
$
5,535
$
5,350
$
6,533
113
111
126
2,285
2,189
2,123
2,379
2,568
2,430
2,490
2,887
4,664
5,063
5,802
6,110
148
245
114
104
330
143
265
374
520
453
479
439
16,481
16,171
16,734
18,952
145
289
149
198
-
-
18
2
(520)
(453)
(479)
(439)
(375)
(164)
(312)
(239)
$
16,106
$
16,007
$
16,422
$
18,713
$
241
$
450
$
1,975
$
2,589
807
2,107
3,706
2,361
1 ()AA
4z
') r,ti7
4z
r, AP1
4z
A Qtil1
Business taxes previously reported as General Government Charges for Services
Page1120
Fiscal Year
$ (18,045)
$ (22,510)
$ (25,019)
$ (24,935)
$ (28,029)
$ (26,795)
3,245
4,683
7,855
5,260
5,230
7,675
$ (14,800)
$ (17,827)
$ (17,164)
$ (19,675)
$ (22,799)
$ (19,120)
$
7,193
$
8,998
$
9,748
$
10,747
$
11,945
$
13,090
130
140
133
160
157
162
2,502
2,712
2,619
2,817
3,142
3,203
2,953
3,406
3,328
3,446
3,873
4,202
6,645
6,923
7,257
7,864
8,139
8,403
135
134
197
458
1,089
632
-
122
86
289
193
-
420
387
486
342
352
623
557
568
1,367
2,013
2,106
2,177
20,535
23,390
25,221
28,136
30,996
32,492
272
260
255
379
1,295
953
(1,248)
120
24
31
150
29
(557)
(568)
(1,367)
(2,013)
(2,106)
(2,177)
(1,533)
(188)
(1,088)
(1,603)
(661)
(1,195)
$
19,002
$
23,202
$
24,133
$
26,533
$
30,335
$
31,297
$
2,490
$
880
$
202
$
3,202
$
2,968
$
5,697
m
1,712
A nnn
m
4,495
r nor
m
6,767
l nnn
m
3,657
n nrn
m
4,568
- rnn
m
6,480
A n A --
Page1121
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2011 2012 2013 2014
General Fund
Reserved
$
-
$
-
$
-
$
-
Unreserved
-
-
-
-
Nonspendable
335
195
189
53
Restricted
175
224
257
312
Assigned
912
1,039
765
1,202
Unassigned
10,048
9,744
8,878
7,669
Total general fund
$
11,470
$
11,202
$
10,089
$
9,236
All other governmental funds
Reserved
$
-
$
-
$
-
$
-
Unreserved, reported in:
Special revenue funds
-
-
-
-
Capital projects fund
-
-
-
-
Nonspendable
848
890
939
1,064
Restricted
6,359
7,763
8,295
8,604
Assigned
2,854
668
-
-
Unassigned
(1)
-
-
-
Total all other governmental funds
$
10,060
$
9,321
$
9,234
$
9,668
Page1122
2015 2016
Fiscal Year
2017 2018 2019 2020
1,300
548
578
641
283
356
247
259
266
228
205
359
304
-
3
3
18
3,227
7,014
7,886
7,137
7,104
8,182
7,859
$
8,865
$
8,693
$
7,984
$
7,976
$
8,688
$
11,801
1,466
1,922
1,683
4
7
9
7,659
4,310
5,885
8,361
9,376
12,111
-
1,226
22,621
21,720
18,700
15,476
$
9,125
$
7,458
$
30,189
$
30,085
$
28,083
$
27,596
Page1123
City of Clermont, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2011
2012
2013
2014
Revenues
Taxes
$ 10,819
$ 8,079 $
7,951
$ 9,546
Franchise fees
2,188
2,123
2,379
Licenses and permits
528
455
884
941
Intergovernmental
6,059
6,310
6,729
8,796
Charges for services
1,013
1,011
1,085
1,212
Fines and forfeitures
186
215
172
589
Impact fees/special assessments
582
679
1,909
1,401
Investment Earnings
148
244
108
99
Miscellaneous
612
474
622
915
Total revenues
19,947
19,655
21,583
25,878
Expenditures
Current:
General government
3,272
3,080
3,148
3,776
Public safety
11,625
11,352
12,579
13,571
Physical environment
275
247
307
423
Transportation
1,472
1,340
1,263
1,635
Economic environment
102
641
722
365
Human services
-
-
-
-
Culture and recreation
1,792
1,769
2,014
2,948
Capital outlay
1,923
2,073
2,638
9,381
Debt service:
Principal
470
490
3,080
571
Interest
162
143
122
177
Total expenditures
21,093
21,135
25,873
32,847
Excess (deficiency) of revenues
over expenditures
(1,146)
(1,480)
(4,290)
(6,969)
Other financing sources (uses)
Transfers in
3,274
1,118
3,091
9,337
Transfers out
(2,776)
(644)
(2,612)
(8,788)
Refunding and new bonds issued
-
-
2,612
6,000
Capital Leases
-
-
-
-
Sale of capital assets
-
-
-
-
Total other financing sources (uses)
498
474
3,091
6,549
Net change in fund balances
$ (648)
$ (1,006)
$ (1,199)
$ (420)
Debt service as a percentage of noncapital
expenditures
3.4%
3.5%
14.9%
3.5%
* Note: Franchise Fees previously reported as Taxes.
**Note: Increase in % due to refunding of 2002 bonds. Without the refunding the % would be 3.4 % in 2013
***Note: Increase in % due to refunding of 2013 bonds. Without the refunding the % would be 4.9% in 2016
Page1124
Fiscal Year
2015
2016
2017
2018
2019
2020
$ 10,275
$ 12,544
$ 13,208
$ 14,353
$ 15,974
$ 17,453
2,502
2,712
2,619
2,817
3,142
3,202
788
1,298
1,594
2,249
1,927
1,691
8,772
8,790
9,054
10,559
10,860
12,342
1,312
1,652
1,746
2,103
2,188
2,483
757
703
358
204
230
241
1,858
1,702
2,341
1,738
1,959
2,530
131
131
192
446
1,065
615
1,047
1,007
1,122
971
965
978
27,442
30,539
32,234
35,440
38,310
41,535
3,600
4,070
3,911
3,948
4,609
4,892
14,844
17,520
18,488
19,750
21,618
21,452
744
777
869
881
982
2,550
1,635
1,878
1,687
1,927
2,165
1,546
564
482
324
343
372
786
3,725
5,038
5,996
5,199
6,302
2,901
2,695
8,514
2,112
4,085
3,846
4,070
884
6,280
1,077
979
2,096
2,147
198
342
272
805
829
772
28,889
44,901
34,736
37,917
42,819
41,116
(1,447) (14,362) (2,502) (2,477) (4,509) 419
3,857
11,897
26,725
7,697
4,937
5,152
(3,323)
(11,329)
(25,957)
(6,332)
(2,834)
(2,974)
-
10,631
23,670
-
-
-
-
-
-
-
919
-
-
1,321
86
1,000
198
29
534
12,520
24,524
2,365
3,220
2,207
$ (913)
$ (1,842)
$ 22,022
$ (112)
$ (1,289)
$ 2,626
4.5%
20.2%
4.6%
5.7%
8.3%
8.2%
Page1125
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal
Property
Utility
Business
Franchise
Year
Tax
Tax
Tax
Fees
Total
2011
5,966
2,568
2,285
10,819
2012
5,535
2,430
113
2,189
10,267
2013
5,350
2,490
ill
2,123
10,074
2014
6,533
2,887
126
2,379
11,925
2015
7,013
2,953
130
2,502
12,598
2016
8,795
3,406
140
2,712
15,053
2017
9,538
3,328
133
2,619
15,618
2018
10,549
3,446
160
2,817
16,972
2019
11,747
3,872
157
3,142
18,918
2020
12,880
4,202
162
3,203
20,447
Taxes Included in Unrestricted Intergovernmental Revenues
Fiscal
Sales
State Revenue
Local Option
Year
Tax
Sharing
Gas Tax
Total
2011
1,100
328
306
1,734
2012
1,296
383
296
1,975
2013
1,419
535
280
2,234
2014
1,567
635
290
2,492
2015
1,820
749
378
2,947
2016
1,848
819
482
3,149
2017
1,945
911
520
3,376
2018
2,172
1,013
548
3,733
2019
2,236
1,116
551
3,903
2020
2,345
1,053
522
3,920
* Business Tax Receipts previously reported under Licenses
Page1126
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Year
Less:
Ended
Real*
Personal
Tax Exempt
Sep 30
Property
Property
Property
2011
2,297,568
211,950
599,871
2012
2,171,815
209,726
598,187
2013
2,124,017
206,870
605,114
2014
2,185,702
205,140
611,063
2015
2,336,882
207,024
630,762
2016
2,574,360
215,752
652,769
2017
2,791,963
215,772
689,683
2018
3,057,114
233,448
724,930
2019
3,406,874
238,430
789,497
2020
3,723,782
247,430
848,948
Total
Estimated
Assessed
Total Taxable
Direct
Actual
Value as a
Assessed
Tax
Taxable
Percentage of
Value
Rate
Value
Actual Value
1,909,647
3.1420
2,509,518
76.10%
1,783,354
3.1420
2,381,541
74.88%
1,725,773
3.1420
2,330,887
74.04%
1,779,779
3.7290
2,390,842
74.44%
1,913,144
3.7290
2,543,906
75.20%
2,137,343
4.2061
2,790,112
76.60%
2,318,052
4.2061
3,007,735
77.07%
2,565,632
4.2061
3,290,562
77.97%
2,855,807
4.2061
3,645,304
78.34%
3,122,264
4.2061
3,971,212
78.62%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
Page1127
Direct Rate
City of
Clermont
Fiscal
Operating
Year
Millage
2011
3.1420
2012
3.1420
2013
3.1420
2014
3.7290
2015
3.7290
2016
4.2061
2017
4.2061
2018
4.2061
2019
4.2061
2020
4.2061
City of Clermont, Florida
Property Tax Rates
Direct and Overlapping' Governments
Last Ten Fiscal YearsZ
(per $1,000 of assessed value)
Overlapping
Rates
Lake
South
Lake
St. Johns
Total
Lake County
County
Lake
County
River Water
Direct &
Operating
Voted
Ambulance
School
Hospital
Water
Management
Overlapping
Millage
Debt Service
MSTU
District
District
Authority
District
Rates
4.7309
0.1101
0.3853
7.5230
0.8666
0.2405
0.4158
17.4142
4.7309
0.1101
0.3853
7.3940
0.8000
0.2405
0.3313
17.1341
4.7309
0.1900
0.3853
7.3200
0.8000
0.2554
0.3313
17.1549
4.7309
0.1900
0.3853
7.1700
0.7900
0.2554
0.3283
17.5789
5.3856
0.1600
0.4629
7.2460
0.7633
0.2554
0.3164
18.3186
5.3051
0.1600
0.4629
7.1970
0.7633
0.2554
0.3023
18.6521
5.1180
0.1524
0.4629
6.8750
0.7332
0.2554
0.2885
18.0915
5.1180
0.1524
0.4629
6.6030
0.6898
0.2554
0.2724
17.7600
5.1180
0.1324
0.4629
6.3550
0.6432
0.4900
0.2562
17.6638
5.0734
0.1100
0.4629
6.8830
0.5886
0.3557
0.2414
17.9211
Source: Lake County Property Appraisers Office
Overlapping rates are those of local and county governments that apply to property owners within the City of Clermont.
2 Taxes levied for the fiscal year are based on the prior year taxable value
Operating millage is the only component of the City's direct rate
Page1128
Taxpaver
Vista at Lost Lake TIC I LLC
BR Citrus Tower LLC
Advenir at Castle Hill LLC
John P. Adams & Ann D. Adams
Family LP
South Lake Hospital, Inc.
US 27-Clermont LLC
Westdale Sundance LTD
Clermont Landing LLC
Weingarten 1-4 Clermont Landing
Senninger Irrigation, Inc.
Fountains at Clermont LLC
Citrus Tower Development
Village at East Lake
Progress Energy Florida, Inc
Wal-Mart Stores East LP
Target Corporation
TOTAL
Source: Lake County Property Appraiser
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
Taxable
Assessed
Value
60,758
43,169
41,102
37,519
35,960
33,560
24,545
20,906
19,270
14,834
$ 331,623
2020
Rank
1
2
3
4
5
6
7
8
9
10
2011
Percentage of
Total Taxable Taxable
Assessed Assessed
Value Value Rank
1.95%
1.38%
1.32%
1.20%
26,014
1.15%
12,012
1.07%
0.79%
16,387
0.67%
0.62%
12,293
0.48%
17,332
14,386
11,655
10,730
10,106
9,236
10.62%
$140,151
Percentage of
Total Taxable
Assessed
Value
1
1.36%
6
0.63%
3
0.86%
5
0.64%
2
0.91 %
4
0.75%
7
0.61 %
8
0.56%
9
0.53%
10
0.48%
7.34%
Page1129
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Collected within the
Year
Total Tax
Fiscal Year of the Levy
Collections in
Ended
Levy for
Percentage
Subsequent
September
Fiscal Year
Amount
of Levy
Years
2011
6,001
5,698
95.0%
15
2012
5,603
5,325
95.0%
5
2013
5,422
5,153
95.0%
8
2014
6,635
6,325
95.3%
9
2015
7,133
6,793
95.2%
6
2016
8,990
8,570
95.3%
4
2017
9,750
9,299
95.4%
9
2018
10,791
10,278
95.2%
6
2019
12,012
11,430
95.2%
5
2020
13,133
12,471
95.0%
7
Total Collections to Date
Percentage
Amount
of Levy
5,713
95.2%
5,330
95.1 %
5,161
95.2%
6,334
95.5%
6,799
95.3%
8,574
95.4%
9,308
95.5%
10,284
95.3%
11,435
95.2%
12,478
95.0%
Note: Property taxes become due and payable on November 1 st of each year. A four (4) percent
discount is allowed if the taxes are paid in November, with the discount declining by one (1)
percent each month thereafter. Accordingly, taxes collected will never be 100 percent of the
tax levy.
Page1130
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Business -Type
Fiscal
Governmental Activities
Activities
Year
Total
Percentage
Ended
Revenue
Capital
Notes
Revenue
Notes
Outstanding
of Personal
Sept
Bonds
Leases
Payable
Bonds
Payable
Debt
Income'
2011
3,570
15,512
19,082
2.55%
2012
3,080
-
-
14,963
18,043
2.30%
2013
-
-
2,612
14,979
17,591
2.19%
2014
-
-
8,041
14,361
22,402
2.74%
2015
-
-
7,157
13,728
20,885
2.45%
2016
-
-
11,509
13,075
24,584
2.40%
2017
-
-
34,102
12,403
6,329
52,834
4.87%
2018
-
-
33,123
12,268
6,329
51,720
4.22%
2019
-
838
31,109
11,467
5,980
49,394
3.76%
2020
-
754
29,045
10,634
5,621
46,054
3.45%
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 138 for personal income and population data.
Per Capital
650
605
582
706
646
709
1,476
1,329
1,212
1,040
Page1131
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2020
(amounts expressed in thousands, except population and per capita amount)
Estimated
Amount
Debt
Percentage
Applicable to
Government Unit:
Outstanding
Applicable
(1) City of Clermont
Lake County
$ 113,053
13.95%
$ 15,776
Lake County School District
173,276
12.42%
21,526
Subtotal, overlapping debt
37,302
City of Clermont, direct debt
29,799
100.00%
29,799
Total direct and overlapping debt
$ 67,101
Sources: Lake County 2020 Comprenhesive Annual Financial Report, Lake County School Board 2020 ACFR,
and Lake County Property Appraiser's Office
1 The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of Lake County's taxable assessed
value that is within the City of Clermont's boundaries and dividing it by Lake County's total taxable
assessed value.
Notes: Overlapping governments are those that coincide, at least in part, with geographic boundaries
of the city. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the property taxpayers of the City of Clermont. This
process recognizes that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the property taxpayers should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for
repaying the debt, of each overlapping government.
The City of Clermont has no legal debt margin.
Page1132
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2012
Public
Communications
Fiscal
Service
Service
Half -Cent
Year
Taxes
Tax
Sales Tax
2011
2,568,141
1,233,789
1,100,125
2012
2,430,440
1,257,217
1,295,687
2013
2,490,461
1,349,929
1,418,710
2014
2,887,161
1,216,076
1,567,249
2015
2,952,785
1,161,566
1,819,909
2016
3,405,642
1,138,032
1,848,294
2017
3,328,087
1,122,258
1,945,237
2018
3,446,407
1,112,440
2,172,025
2019
3,872,099
1,131,382
2,235,693
2020
4,201,714
1,232,777
2,344,875
Total Revenue
Available for
Debt Service
Debt Service
Principal
Interest
Coverage
4,902,055
470,000
161,806
7.76
4,983,344
490,000
143,350
7.87
5,259,100
3,080,000
66,550
1.67
5,670,486
570,599
25,361
9.51
5,934,260
577,959
19,101
9.94
6,391,968
585,609
12,760
10.68
6,395,582
591,692
6,345
10.69
6,730,872
286,141
1,559
23.40
7,239,174
7,779,366
**
**
**
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2002 was refunded in 2012, this includes the payoff of the original bonds.
This Note was paid off in fiscal year 2018
Page1133
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2016
Public
Communications
Total Revenue
Fiscal
Service
Service
Available for
Year
Taxes
Tax
Debt Service
2011
-
-
-
2012
-
-
-
2013
-
-
-
2014
2,887,161
1,216,076
4,103,237
2015
2,952,785
1,161,566
4,114,351
2016
3,405,642
1,138,032
4,543,674
2017
3,328,087
1,122,258
4,450,345
2018
3,446,407
1,112,440
4,558,847
2019
3,872,099
1,131,382
5,003,481
2020
4,201,714
1,232,777
5,434,491
Debt Service
Principal
Interest
Coverage
-
-
N/A
-
-
N/A
-
-
N/A
-
82,350
49.83
305,772
178,337
8.50
5,694,228
195,148
0.77
255,000
105,635
12.34
377,841
99,212
9.56
385,511
91,464
10.49
393,337
83,558
11.40
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2013 was refunded in 2016, this includes the payoff of the original bonds.
Page1134
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Infrastructure Sales Surtax Revenue Note, Series 2016
Infrastructure
Fiscal
Sales
Debt Service
Year
Surtax
Principal
Interest
Coverage
2011
-
-
-
N/A
2012
-
-
-
N/A
2013
-
-
-
N/A
2014
-
-
-
N/A
2015
-
-
-
N/A
2016
2,964,966
-
27,466
107.95
2017
3,115,549
230,716
109,914
9.15
2018
3,397,707
314,809
104,132
8.11
2019
3,474,813
321,483
97,387
8.30
2020
3,603,194
328,298
90,499
8.60
Note: Details regarding the city's outstanding debt can be found in the notes
to the financial statements.
Page1135
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Master Plan Capital Projects Revenue Note, Series 2017
Infrastructure Recreation
Fiscal Sales Impact Stormwater Sanitation
Year Surtax Fees Fees Fees
2011
2012
2013
2014
2015
2016
-
-
-
-
2017
3,115,549
1,495,242
1,002,859
3,087,701
2018
3,397,707
1,047,736
1,375,516
3,176,721
2019
3,474,813
1,157,840
1,596,720
3,263,253
2020
3,603,194
1,529,037
1,695,361
3,550,386
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements
Total Revenue
Available for
Debt Service
Debt Service
Principal Interest
Coverage
N/A
N/A
N/A
N/A
N/A
N/A
8,701,352
-
N/A
8,997,680
- 749,550
12.00
9,492,626
1,657,000 767,210
3.92
10,377,978
1,701,000 723,053
4.28
Page1136
Fiscal
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Water and Sewer Revenue and Refunding Bonds
Water and
Sewer
Operating
Revenues'
10,561,295
10,496,535
10,687,908
11,108, 744
11,767,901
12,578,644
13,226,994
13,379,152
15,017,621
16,069,244
Water and
Sewer
Operating
Expenses2
7,080,592
6,377,695
6,677,774
7,090,566
7,419,231
7,272,716
7,661,085
8,104,464
8,753,924
9,069,911
Net Revenue
Available for
rinh4 Cnruirn
3,480,703
4,118,840
4,010,134
4,018,178
4,348,670
5,305,928
5,565,909
5,274,688
6,263,697
6,999,333
Debt Service
Principal
535,000
580,000
595,000
615,000
630,000
650,000
670,000
10,920,000 3
800,000
828,000
In4nrnc4
660,640
643,307
604,811
586,461
567,636
548,236
504,122
211,101
294,524
267,058
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Coverage
2.91
3.37
3.34
3.34
3.63
4.43
4.74
0.47
5.72
6.39
' Operating revenue is computed per bond resolution requirements. Investment earnings are included.
2Operating expense is computed per bond resolution requirements. Depreciation expense is not included.
3 Water and Sewer Revenue Refunding Bonds, Series 2009 was partially refunded in 2017, this includes the payoff of the
original bonds.
Page1137
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income
(amounts
Fiscal
expressed in
Year
Population'
thousands)
2011
29,358
748,482
2012
29,827
784,361
2013
30,201
802,803
2014
31,745
816,926
2015
32,348
854,020
2016
34,667
1,023,959
2017
35,807
1,085,991
2018
38,906
1,226,940
2019
40,750
1,312,598
2020
44,301
1,335,011
Education
Level in
Per Capita
Years of
Personal
Median
Formal
Income
Agee
Schooling2
25,495
40.9
13.6
26,297
46.8
13.6
26,582
41.5
13.8
25,734
41.9
13.7
26,401
42.1
13.7
29,537
42.1
13.4
30,329
41.6
13.3
31,536
42.3
13.4
32,211
42.5
13.9
30,135
42.1
14.0
School Unemploy-
Enrollment3 ment Rate
5,116
5,158
5,153
5,198
8,436
8,712
8,761
8,841
8,745
8,625
Sources: ' College of Business Administration, University of Florida - Bureau of Economic and Business Research
2 Metro Orlando Economic Development Commission
3 Lake County School Board
4 U.S. Department of Labor, Bureau of Labor Statistics
9.3%
7.0%
5.8%
5.6%
4.8%
4.4%
3.1 %
2.7%
2.8%
6.7%
Page1138
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
2020
2011
Number Percentage of Number Percentage of
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Total City Employment 19,268 20,604
South Lake Hospital, Inc.
Publix Supermarkets
Lake County School System
City of Clermont
Walmart
Lowe's
Target Corporation
Senningers
Clermont Health & Rehab
Chick Fil A
Lake County Sheriffs Office
Winn Dixie
Progressive Plumbing Inc.
TOTAL
1,600
1
8.30%
991
2
5.14%
714
3
3.71 %
452
4
2.35%
392
5
2.03%
356
6
1.85%
334
7
1.73%
210
8
1.09%
180
9
0.93%
170
10
0.88%
1,200
1
5.82%
359
4
1.74%
465
3
2.26%
261
8
1.27%
282
7
1.37%
320
5
1.55%
310
6
1.50%
774
2
3.76%
207
9
1.00%
200
10
0.97%
5,399 28.02% 4,378
Source: Various employers in city limits & Bureau of Labor Statistics (BLS) of the U.S. Department of Labor
21.25%
Page1139
Employer
Kings Ridge
South Lake Hospital, Inc.
Taylor Morrison
Heritage Hills of Clermont
Lake County School System
Vista at Lost Lake
City of Clermont
Esplanade at Highland Ranch
Mattamy Homes
Westdale Sundance LTD
Westminster Community Care Service
Emerald Lakes of Clermont
Gardens at Citrus Towers
Sundance Clermont Apartments
Osprey Ridge Apartments LTD
TOTAL
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
2020
2011
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
120,138
1
3.89%
276,474
1
12.15%
36,087
2
1.17%
24,737
3
1.09%
32,703
3
1.06%
29,899
4
0.97%
19,695
5
0.64%
24,249
4
1.07%
18,828
6
0.61 %
11,701
7
0.51 %
17,730
7
0.57%
27,054
2
1.19%
14,577
8
0.47%
14,399
9
0.47%
11,313
10
0.37%
15,790
5
0.69%
7,817
10
0.34%
12,300
6
0.54%
8,574
8
0.38%
8,131
9
0.36%
315,369
10.20%
416,827
18.31 %
The City of Clermont had a total metered water flow of approximately 3,090,626 gallons for the
12-month period ending September 30, 2020
Page1140
Employer
South Lake Hospital, Inc.
Vista at Lost Lake
Lake County School System
BR Citrus Tower LLC
SPT Dolphin Osprey Apts LLC
Westdale Sundance LTD
Westminster Comm Care Service
Advenir At Castle Hill
Senninger Irrigation
Mister Car Wash
Hwy 27 17156 LLC (BP)
Villages at East Lake
Olive Garden
Walmart
Empirian Property Management
Superior Residences of Clermont
TOTAL
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
2020
2011
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
33,579
1
3.00%
26,264
1
1.78%
18,828
2
1.68%
14,102
3
0.95%
15,803
3
1.41 %
17,928
2
1.21 %
14,882
4
1.33%
11,794
5
1.05%
11,313
6
1.01%
9,798
7
0.87%
13,901
4
0.94%
9,742
8
0.87%
9,497
9
0.85%
9,084
10
0.81 %
144,320
12.89%
3,795
6
0.26%
11,096
5
0.75%
3,599
7
0.24%
3,265
8
0.22%
3,105
9
0.21 %
2,443
10
0.17%
99,498
6.73%
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,119,828
gallons for the 12-month period ending September 30, 2020
Page1141
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Function
General Government
Public Safety:
Police
Sworn personnel
Non sworn personnel
Fire
Firefighters
Other personnel
Building Services
Physical Environment
Transportation
Human Services
Culture & Recreation
Water
Sewer
Stormwater
Sanitation
Total
Source: City of Clermont Finance Department.
Full-time Equivalent Employees as of September 30
2011 2012 2013 2014
27.00 25.85 26.66 31.56
57.00
57.00
57.00
61.00
5.00
5.00
6.00
6.00
48.00
47.80
47.80
56.80
2.00
2.00
2.00
5.20
1.40
0.60
0.60
6.00
4.00
4.00
4.95
4.70
13.50
14.80
14.65
12.95
0.00
0.00
0.00
0.00
22.00
21.20
21.10
27.25
29.15
29.45
29.66
30.61
25.85
24.50
23.78
23.88
9.40
7.95
6.72
6.87
16.70
16.85
17.08
17.18
261.00
257.00
258.00
290.00
Page1142
Full-time Equivalent Employees as of September 30
2015 2016 2017 2018 2019 2020
36.00 36.00 38.70 41.45 49.50 48.90
61.00
66.00
70.00
79.00
81.00
86.00
6.00
6.00
6.00
7.00
7.00
7.00
56.80
59.80
66.50
74.20
81.00
81.00
4.20
4.20
6.50
8.80
8.00
8.00
6.00
7.00
11.30
11.55
12.30
13.55
7.45
8.70
10.70
10.70
10.70
9.65
12.85
12.60
14.60
16.60
11.9
11.73
0.00
0.00
0.00
0.00
0.00
0.00
33.35
35.35
39.35
40.60
37.50
39.22
29.35
29.65
29.15
30.45
30.55
32.70
24.15
26.45
26.95
31.25
31.40
32.50
6.65
7.75
10.25
10.10
13.85
13.95
18.20
18.50
21.00
21.30
21.30
20.80
302.00
318.00
351.00
383.00
396.00
405.00
Page1143
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function
2011
2012
2013
2014
General Government
Municipal boundary (square miles)
14.90
14.95
14.95
15.18
Business Tax Receipts issued
1,843
2,237
2,483
1,955
A/P Checks issued
4,875
2,336
2,288
3,529
Commercial construction (units)
3
8
20
15
Commercial construction
(value in thousands)
18,020
15,203
34,268
17,288
Residential construction (units)
151
173
327
572
Residential construction
(value in thousands)
23,558
25,882
53,055
62,117
Public Safety:
Police
Auto accidents
1,121
1,259
1,402
1,357
Physical arrests
699
644
886
631
911 calls received
5,587
5,911
6,352
6,643
Evidence processed (pieces)
1,297
1,413
2,930
2,384
Parking violations
378
201
252
379
Traffic violations
6,312
5,389
7,225
4,623
Fire
Volunteer firefighters
6
6
-
-
Fire inspections completed
896
662
1,240
3,766
Emergency calls answered
3,822
3,320
3,414
4,127
Non -emergency calls answered
805
934
447
987
Water
Residential accounts
18,240
18,619
19,399
19,670
Commercial accounts
1,210
1,207
1,232
1,234
Annual water usage
(thousands of gallons)
2,275,936
2,391,485
2,392,022
2,406,183
Sewer
Residential accounts
12,722
12,936
13,407
13,718
Commercial accounts
1,167
1,166
1,194
1,055
Sources: Various government departments.
• Decrease in accounts due to software conversion combining
multi -metered
services
Page1144
Fiscal Year
2015
2016
2017
2018
2019
2020
16.65
16.78
16.78
17.12
19
19.1
1,701
1,639
1,633
1,623
1,585
1,572
2,747
3,276
3,651
3,872
3,859
3,543
16
20
14
20
15
10
8,625
42,241
13,302
42,042
30,862
13,695
323
740
433
387
377
428
55,178
103,423
87,873
104,394
87,927
92,541
1,573
1,909
1,909
1,802
2,082
1,780
652
589
593
569
663
632
7,618
6,397
6,809
7,943
9,185
8,703
989
674
1,165
1,040
1,821
1,331
144
181
385
147
101
319
6,879
7,421
6,713
4,676
4,790
4,340
3,813
4,468
2,586
2,203
2,493
2,445
4,202
6,001
6,828
5,689
5,367
6,199
523
806
925
989
1,493
814
13,242 •
13,561
14,339
14,805
15,311
15,882
1,211
1,220
1,235
1,498
1,283
1,283
2,521,397
2,572,852
2,743,657
2,687,665
2,816,071
3,090,626
13,578
13,860
14,619
15,198
15,669
16,330
1,074
1,091
1,106
1,107
1,126
1,135
Page1145
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function
General Government
Public Safety:
Police
Police stations
Patrol units
Fire
Fire department facilities
Staffed fire stations
Fire hydrants
Fire apparatus
Staffed fire apparatus
ALS non -transport units
Transportation
Streets paved (miles)
Streetlights
Culture & Recreation
Number of parks
Parks acreage
Scenic linear trail (miles)
Tennis courts
Piers
Boat ramp
Water
Miles of water mains
Sewer
Miles of sanitary sewers
Miles of storm sewers
Sources: Various government departments.
* Does not include private systems
Fiscal Year
2011
2012
2013
2014
1
1
1
1
46
46
55
57
4
4
4
4
3
3
3
3
2,016
2,048
2,120
2,146
7
8
8
8
5
5
5
5
4
4
4
4
133.20
133.20
173.91
191.52
1,352
3,103
3,103
3,127
23
23
23
23
349.5
349.5
349.5
349.5
5.7
5.7
5.7
5.7
9
9
9
9
4
4
5
5
1
1
1
1
197.40
242.36
243.14
222.75
132.02
156.81
160.42
161.25
89.80
105.38
109.05
133.70
Page1146
Fiscal Year
2015
2016
2017
2018
2019
2020
1
1
1
1
1
1
79
95
98
104
106
107
3
4
5
5
5
5
3
4
4
4
4
4
2,200
2,646
2,646
2,646
2,456
2,456
12
6
7
9
9
9
3
6
6
7
7
7
3
1
6
6
7
7
202.38
210.00
210.60
210.60
210.60
210.60
3,158
3,160
1,309
1,309
1,309
1,309
23
23
24
24
24
24
378.0
443.9
443.9
443.9
443.9
443.9
5.7
7.5
7.5
8.0
8.0
8.0
9
9
9
9
9
9
10
11
11
9
9
9
1
1
1
1
1
1
230.28
229.44
297.00
297.81
331.86
334.98
167.60
168.57
220.00
224.00
236.34
238.58
48.22
47.63
47.56
48.36
50.38
50.38
Page1147
Page1148
OTHER REPORTS
Page1149
Page1150
McDirmit Davis
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Clermont, Florida
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United
States, the financial statements of the governmental activities, business -type activities, each major fund, and the aggregate
remaining fund information of the City of Clermont, Florida, as of and for the year ended September 30, 2020, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report
thereon dated December 20, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Clermont, Florida's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of City of Clermont's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A
material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility
that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses. We did identify certain deficiencies in internal control, described below that we consider to be significant
deficiencies.
ML 20-01 Timely and Regular Reconciliation of Accounts
Balance sheet and other accounts should be reconciled timely, on a regular basis to detect incorrect or missing transactions.
During our audit, we noted that several of the City's accounts, such as fixed assets, pension accounts and grant revenues and
expenditures are not reconciled on a regular basis during the year, or in a timely manner after year end, causing a delay in the
year end annual audit. Due to staffing limitations, and additional grant requirements, account reconciliations were not performed
timely. As a result, misstatements, whether due to fraud or error, would not be detected in a timely manner. We recommend that
the City implement procedures to ensure accounts can be reconciled on a regular, ongoing basis throughout the year.
Management Response
The City's procedures will ensure that reconciliations are completed timely and will request outside actuarial reports meet the
City's reporting timeframes for completion of these reconciliations.
the trusted partner
Page1151
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Clermont's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The result of our tests disclosed instances of noncompliance, or other matters that are required to be reported
under Government Auditing Standards, and which are described below.
MIL 20-2- Timely Completion of Annual Audit
Florida Statutes require the annual audit to be submitted no later than nine month's after the City's fiscal year end. Due to
staffing issues, and delays with account reconciliations, the audit was not able to be completed in a timely manner. We
recommend the City implement procedures to insure annual audits are completed in a timely manner.
Management Response
Procedures are in place to ensure the completion of the audit in compliance with Florida Statutes.
City's Response to Findings
The City's response to the findings identified in our annual audit are included in this report. The City's response was not
subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
�%llLLiwrit LYtu4z
Orlando, FL
December 20, 2021
Page1152
McDirmit Davis
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH
MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
Honorable Mayor and City Council
City of Clermont, Florida, Florida
Report on Compliance for Each Major Federal Program
We have audited the City of Clermont, Florida's (the City) compliance with the types of compliance requirements described in the
OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the
year ended September 30, 2020. The City's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards
applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the
types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing
standards generally accepted in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining,
on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our
audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could
have a direct and material effect on each of its major federal programs for the year ended September 30, 2020.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types
of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's
internal control over compliance with the types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion
on compliance for each major federal program and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance.
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Page1153
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control
over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is
not suitable for any other purpose.
,0
Orlando, Florida
December 20, 2021
Page1154
CITY OF CLERMONT, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2020
Federal Grantor
Pass -Through Grantor CFDA
Grantor program title Number
U.S. Department of Housing and Urban Development (HUD)
State of Florida, Department of Economic Opportunity
Community Development Block Grant (CDBG) 14.228
Total U.S. Department of Housing and Urban Development (HUD)
Agency or Pass -through
Entity Grant Number
Total
Expenditures
19DB-ON-06-45-02-N17 $ 30,236
30,236
FL0350300
U.S. Department of Justice (DOJ)
FY19
Equitable Sharing
16.922
45,990
Bulletproof Vest Partnership
16.607
BJA-2018-13605/13907
5,830
Lake County
Mobile Crisis Response Officer
16.745
38,896
Total U.S. Department of Justice (DOJ)
90,716
Agreement # Y2267
U.S. Department of Treasury
COVID- Coronavirus Relief Fund'
21.019
1,981,350
Total Department of Agriculture and Consumer Services
1,981,350
Executive Office of the President -Office of National Drug Control Policy
G18CF0008A
Seminole County Sheriff Office
WG-CR-0017
High Intensity Drug Trafficking Areas
95.001
11,079
Organized Crime Drug Enforcement Task force
95.001
6,938
Total Executive Office of the President -Office of National Drug Control Policy
18,017
U.S. Department of Homeland Security (DHS)
Various
State of Florida, Department of Emergency Management
EMW-2016-FH-00366
Hurricane Irma
97.036
14,822
Staffing for Adequate Fire and Emergency Response (SAFER)
97.083
292,058
Total U.S. Department of Homeland Security (DHS)
306,880
Total Expenditures of Federal Awards
$ 2,427,199
Denotes a major program
See accompanying Notes to Schedule of Expenditures of Federal Awards.
Page1155
City of Clermont, Clermont, Florida
Notes to Schedule of Expenditures of Federal Awards
Year Ended September 30, 2020
NOTE 1 BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the City of
Clermont, Florida (the City) under programs of the federal government for the year ended September 30, 2020. The information in
this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the
Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Therefore, amounts reported on the
Schedule are based on expenditures incurred as of September 30, 2020, even if grant or loan was received subsequent to that date.
Pass -through entity identifying numbers are presented where available.
NOTE 3 INDIRECT COST RATE
The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
NOTE 4 FEMA EXPENDITURES
Expenditures for CFDA No. 97.036, Hurricane Irma include $14,822 of expenditures that were incurred in prior fiscal years.
Page1156
City of Clermont, Clermont, Florida
Schedule of Findings and Questioned Costs
Year Ended September 30, 2020
Section I - Summary of Independent Auditor's Results:
Financial Statements
Type of auditors' report issued:
Unmodified
Internal control over financial reporting:
• Material weakness identified?
Yes
X No
• Significant deficiency identified
X Yes
— None reported
Noncompliance material to financial
Statements noted?
X Yes
— No
Federal Awards
Type of auditors' report issued on compliance for major
federal programs:
Unmodified
Internal control over major Federal program:
• Material weakness identified?
Yes
X No
• Significant deficiency identified
Yes
X None reported
Any audit findings disclosed that are required to be reported in
accordance with section 200.516 of the Uniform Guidance?
Yes
X No
Identification of major federal awards
Dollar threshold used to distinguish between
type A and type B programs
Auditee qualified as a low -risk auditee?
Section II - Financial Statement Findings:
Section III - Federal Award Findings and
Questioned Costs:
Section IV - Federal Award Summary
Schedule of Prior Year Findings:
CFDA No. 21.019 COVID 19- Coronavirus Relief Fund
$750,000
Yes X No
None
None
There were no audit findings for the year ended
September 30, 2019.
Page1157
McDirmit Davis
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Clermont, Florida
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
Report on the Financial Statements
We have audited the financial statements of the City of Clermont, Florida, as of and for the fiscal year ended September 30,
2020, and have issued our report thereon dated December 20, 2021.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida Auditor
General.
Other Reporting Requirements
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards;
Independent Auditor's Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control
over Compliance; Schedule of Findings and Questioned Costs; and Independent Auditor's Report on an examination conducted
in accordance with ACIPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with
Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated December 20, 2021,
should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i.)l ., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to
address findings and recommendations made in the preceding annual financial audit report. There were no recommendations in the
preceding audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary
government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to
the financial statements. This information has been disclosed in the notes to the financial statements.
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us apply appropriate procedures and communicate the
results of our determination as to whether or not the City of Clermont, Florida has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined
that the City of Clermont, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment
procedures for the City. It is management's responsibility to monitor the City of Clermont, Florida's financial condition, and our
financial condition assessment was based in part on representations made by management and the review of financial information
provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial
management. In connection with our audit, we did not have any such recommendations.
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Page1158
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant
agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less
than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of This Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida
Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the council, and
applicable management, and is not intended to be and should not be used by anyone other than these specified parties.
7illWUrritDm4d
Orlando, Florida
December 20, 2021
Page1159
934 North Magnolia Avenue, Suite 100
McDirmit Davis Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH
THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES
The Honorable Mayor and City Council
City of Clermont, Florida
We have examined City of Clermont, Florida's (the City) compliance with the requirements of Section 218.415, Florida Statutes, during
the year ended September 30, 2020. Management is responsible for the City's compliance with those requirements. Our responsibility
is to express an opinion on the City'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 the standards applicable to attestation engagements contained in Government Auditing Standards issued by the
Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the City'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's
compliance with specified requirements.
In our opinion, City of Clermont, Florida complied, in all material respects, with the aforementioned requirements for the year ended
September 30, 2020.
Orlando, Florida
December 20, 2021
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Page1160