HomeMy WebLinkAbout1996 06 10 Regular Item D
,
FUNDING:
C'
RECOMMENDATION:
The City Manager recommends the Commission to receive and adopt the report
of the Auditor's on the FY 95 Audit and attached Management Letter and provide
staff with direction it deems appropriate.
IMPLEMENTA TION SCHEDULE:
The resolution of Management Letter issues can be substantially corrected in FY
97 provided the Commission makes funds available in the FY 97 budget as
proposed.
ATTACHMENTS:
A) Cooper & Lybrand's FY 95 Audit and Management Letter.
COMMISSION ACTION:
Page 2
06/03 '96 14:41
ID:COOPERS & LYBRAND
FAX:
PAGE
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Coopers
& LYbrand
Cooper. .. Lvbrand L.L.P.
200 South Orange Avenl,le
20th Floor
Ollando. Florida 32801
telephone (407) 843.1190
lMelmile (407) 244-7$01
a prOfessionel sBrvices jlrm
June 3. 1996
Mr. Ronald W. McLemore
City Manager
City of Winter Springs
1126 East State Road 434
Winter Springs, FL 32708-2799
Dear Ron:
It is with deepest apology that I inform you that we will not be able to deliver the final issued fi-
nancial statements for the City by the end of today, Monday, June 3rd. Unfortunately, the partner
who was scheduled to give our required final concurrence on the statements before their release is
dealing with both the sudden terminal stage of his mother's illness, as well as being ill with the flu
himself
Under the circumstances, let me propose that the City provide to the Commissioners a discussion
draft of the financial statements with the assurance that the final issued financial statements will be
available at the June] Oth Commission meeting.
Please call me as soon as possible at 244-7511 to discuss whether this option would be acceptable
to you. Again, my sincere apologies for any inconvenience this delay has caused.
Sincerely,
,/., .-...-_.~)
~~d:t
Patrick J. Knipe,
Partner
CoopelS & lybo'and L.L.P. is a m6tllber 0( Coope/s & Lybrand Ifllllmationat. 8 IImked IlabHlty association Incorporaled In Switzerland.
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City of Winter Springs, Florida
Year Ended September 30, 1995
, .~ i:
fPJ~~[LD[M]D[M~~W [Q)~~[?[J
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
CONTENTS
~
Report of Independent Accountants .......................................................................... 1
General Purpose Financial Statements (Combined Statements - Overview)
Combined Balance Sheet - All Fund Types and Account Groups ......................................... 2
Combined Statement of Revenues, Expenditures and Changes in Fund .
Balances - All Governmental Fund Types ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
Combined Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget (GAAP Basis) and Actual- All Governmental Fund Types......................... 7
Combined Statement of Revenues, Expenses and Changes in Retained
EarningslFund Balance - Proprietary and Fiduciary Fund Types ...................................... 11
Statement of Cash Flows - Proprietary Fund Type ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12
Notes to Financial Statements ........................................................................... 13
Combining, Individual Fund Statements and Schedule
Governmental Fund Types
General Fund
Schedule of Expenditures - Budget (GAAP Basis) and Actual .....................................33
Special Revenue Funds
Combining Balance Sheet ............................................................................ 34
Combining Statement of Revenues, Expenditures and Changes in Fund Balance...................... 36
Combining Statement of Revenues, Expenditures and Changes in
Changes in Fund Balance - Budget (GAAP Basis) and Actual ..................................... 38
Debt Service Funds
Combining Balance Sheet ............................................................................ 46
Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................... 47
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget (GAAP Basis) and Actual ............................................. 48
Capital Projects Funds
Combining Balance Sheet ............................................................................ 50
Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................... 51
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget (GAAP Basis) and Actual ............................................. 52
Enterprise Funds
Combining Balance Sheet ............................................................................ 54
Combining Statement of Revenues, Expenses and Changes in Retained Earnings .....................56
Combining Statement of Cash Flows ................................................................. 57
Fiduciary Fund Types
Trust and Agency Funds
Combining Balance Sheet ......................................................................... 58
Statement ofChanges m '_~~mm~~~l" 'ID)~ffii~;if""""""" 59
FOR DISCUSSION PURPOSES ONLY
CONTENTS-CONTINUED
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CITY OF WINTER SPRINGS, FLORIDA
Report on Compliance with Laws and Regulations
Report on Internal Control Structure
Management Comments
[?)~~[L~~~~~~W ~[f~[~GS:'~
FOR DISCUSSION PURPOSES ONLY
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Report of Independent Accountants
The Honorable Mayor,
Members of the City Commission,
and City Manager
City of Winter Springs, Florida
We have audited the accompanying general-purpose financial statements and the combining and individual
fund financial statements of the City of Winter Springs, Florida, as of and for the year ended September 30,
1995. These financial statements are the responsibility of the City of Winter Springs, Florida,
management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all material
respects, the financial position of the City of Winter Springs, Florida, as of September 30, 1995, and the
results of its operations and the cash flows of its proprietary fund types for the year then ended in
conformity with generally accepted accounting principles. Also, in our opinion, the combining and
individual fund financial statements referred to above present fairly, in all material respects, the financial
position of each of the individual funds of the City of Winter Springs, Florida, as of September 30, 1995,
and the results of operations of such funds and the cash flows of individual proprietary fund types for the
year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 13, 1996
on our consideration of the City of Winter Springs, Florida's internal control structure and a report dated
March 13, 1996 on its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the general-purpose financial statements
taken as a whole and on the combining and individual fund financial statements. The accompanying
schedule of expenditures - budget (GAAP basis) and actual is presented for purposes of additional analysis
and is not a required part of the financial statements of the City of Winter Springs, Florida. The
information in this schedule has been subjected to the auditing procedures applied in the audit of the
general-purpose, combining and individual fund financial statements and, in our opinion, is fairly stated in
all material respects in relation to the financial statements taken as a whole.
~~~[L~~~~~~W [g)~L~J~'\:
FOR DISCUSSION PURPOSES ONL\'
Orlando, Florida
March 13, 1996
1
CITY OF WINTER SPRINGS, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1995
Governmental Fund Types
Special Debt Capital
Assets General Revenue Service Projects
Cash and cash equivalents $2,128,864 $2,958,587 $1,993,654 $ 34,850
Investments 1,921,168
Receivables:
Accounts receivable - net 16,375
Special assessments 72,335
Accrued interest receivable 1,018 4,047
Due from other governments 1,685
Due from other funds 118,864 16,314 .
Inventories 3,645
Restricted Assets:
Cash and cash equivalents 90,257
Investments
Property, plant and equipment
Less accumulated depreciation
Unamortized bond costs
Amount available in debt service funds
Amount to be provided for retirement of general
long-tenn debt
Amount to be provided for capital lease
Amount to be provided for accrued compensated
absences
Total Assets $2,433,043 $2,978,948 .$1,993,654 $1 ,956,018
See accompanying notes to financial statements.
[?)~~fL~~~[f!J~~W [Q)~~~~clf
FOR DISCUSSION PURPOSES ONLY
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Fiduciary
Proprietary Fund Type Fund Types Account Groups Totals
Trust and General General Long- (Memorandum
Enterprise Agency Fixed Assets Tenn Debt Only)
$ 1,147,258 $ 1,219,223 $ $ $ 9,482,436
1,579,535 3,500,703
727,098 743,473
72,335
99 5,164
1,685
42,255 10,272 187,705
149 3,794
2,070,488 2,160,745
2,566,070 2,566,070 ,
40,973,465 10,830,745 51,804,210
(9,987,790) (9,987,790)
486,377 486,377
1,993,654 1,993,654
10,536,346 10,536,346
59,867 59,867
153,742 153,742
$ 38,025,370 $ 2,809,129 $ 10,830,745 $ 12,743,609 $ 73,770,516
(f)~[g[L~~~~~~W [Q)~~[Flf
FOR DISCUSSION PURPOSES ONLY
Continued
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CITY OF WINTER SPRINGS, FLORIDA
COMBINED BALANCE SHEET - CONTINUED
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1995
Liabilities and Fund Equity
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Payable from restrided assets:
Accrued interest
Revenue bonds payable
Obligation under futures agreement
Customer deposits
Deferred revenue
Accrued compensated absences
Deferred compensation
Obligation under futures agreement, less
portion payable from restrided assets
Revenue bonds payable, less portion payable
from restricted assets
Capital lease payable
Total liabilities
Fund Equity:
Investment in general fIXed assets
Contributed capital
Retained eamings:
Reserved for renewal and replacement
Reserved for capital improvements
Unreserved
Fund balances:
Reserved for debt service
Reserved for encumbrances
Reserved for inventories
Reserved for capital projects
Reserved for employee retirement
Unreserved
Total fund equity
Total Liabilities and Fund Equity
See accompanying notes to financial statements.
General
Governmental Fund Types
Special Debt
Revenue Service
Capital
Projects
$ 117,330 $ 123,327 $
120,933
26,587 195
$ 27,759
90,257
47,694 16,314
143,973
546,n4 139,836
27,759
[P)~~iLD[MJDOO~~Y! [Q)~~[PIJ
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA I
COMBINED STATEMENT OF REVENUES. EXPENDITURES I
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES I
Year Ended September 30, 1995 I
Governmental Fund Types Totals
Special Debt Capital (Memorandum I
General Revenue Service Projects. Only)
Revenues: I
Taxes and special assessments $ 2,722,001 $ 2,152,117 $ $ $ 4,874,118
Licenses, permits and fees 473,711 383,313 857,024
Intergovernmental revenues 1,815,149 205,502 2,020,651
Charges for services 132,191 132,191 I
Fines and forfeitures 154,504 52 154,556
Interest 115,493 128,535 105,065 113,163 462,256
Miscellaneous 603,448 2,200 5,011 610,659
Total revenues 6,016,497 2,871,719 105,065 118,174 9,111,455 I
Expenditures:
Current:
General government 1,518,386 6,198 1,524,584 I
Public safety 3,542,950 13,402 3,556,352
Transportation 827,161 184,263 1,011,424
Culture and recreation 706,716 706,716 I
Capital outlay 322,232 350,980 440,885 1,114,097
Debt service:
Principal retirement 113,965 235,000 348,965
Interest and fiscal charges 8,763 720,763 729,526 I
Total expenditures 7,040,173 554,843 955,763 440,885 8,991,664
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,023,676) 2,316,876 (850,698) (322,711) 119,791 I
Other Financing Sources (Uses):
Operating transfers in 1,298,800 845,052 881,703 3,025,555
Operating transfers out (3,025,555) (3,025,555) I
Total other financing
sources (uses) 1,298,800 (2,180,503) 881,703
Excess of Revenues and Other I
Financing Sources Over (Under)
Expenditures and Other Uses 275,124 136,373 31,005 (322,711 ) 119,791
Fund Balances, October 1, 1994 1,611,145 2,702,739 1,962,649 2,250,970 8,527,503 I
Fund Balances, September 30, 1995 $ 1,886,269 $ 2,839,112 $ 1,993,654 $ 1,928,259 $ 8,647,294
See accompanying notes to financial statements. I
~~~[L~~~~~~W [Q)~~[Flr I
FOR DISCUSSION PURPOSES ONLY
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I CITY OF WINTER SPRINGS, FLORIDA
I COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET IGAAP BASIS) AND ACTUAL
I ALL GOVERNMENTAL FUND TYPES
I Year Ended September 30, 1995
General Fund
I Variance
Favorable
Budget Actual (Unfavorable)
I Revenues:
Taxes and special assessments $ 2,804,135 $ 2,722,001 $ (82,134)
I Licenses, permits and fees 503,285 473,711 (29,574)
Intergovernmental revenues 1,815,292 1,815,149 (143)
Charges for services 132,335 132,191 (144)
Fines and forfeitures 155,000 154,504 (496)
I Interest 115,570 115,493 (77)
Miscellaneous 603,464 603,448 (16)
Total revenues 6,129,081 6,016,497 (112,584)
I Expenditures:
Current:
General government 1,692,514 1,518,386 174,128
I Public safety 4,044,363 3,542,950 501,413
Transportation 870,876 827,161 43,715
Culture and recreation 794,343 706,716 87,627
I Capital outlay 309,463 322,232 (12,769)
Debt service:
Principal retirement 114,710 113,965 745
Interest and fiscal charges 10,153 8,763 1,390
I Total expenditures 7,836,422 7,040,173 796,249
Excess (Deficiency) of Revenues Over (Under)
I Expenditures (1,707,341) (1,023,676) 683,665
Other Financing Sources (Uses):
Operating transfers in 1,298,938 1,298,800 (138)
I Operating transfers out
Total other financing sources (uses) 1,298,938 1 ,298,800 (138)
I Excess of Revenues and Other Finance Sources Over
(Under) Expenditures and Other Uses (408,403) 275,124 683,527
Fund Balances, October 1, 1994 1,611,145 1,611,145
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Fund Balances, September 3D, 1995 $ 1 ,202,742 $ 1.886,269 $ 683,527
I See accompanying notes to financial statements. [PJ~~[L~[M]~~~~W [Q)~~[Plr
FOR DISCUSSION PURPOSES ONLY
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Continued
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CITY OF WINTER SPRINGS, FLORIDA
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET lGAAP BASIS) AND ACTUAL - CONTINUED
ALL GOVERNMENTAL FUND TYPES
Year Ended September 30,1995
Special Revenue Funds
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes and special assessments
Licenses, pennits and fees
Intergovernmental revenues
Charges for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
$ 2,149,733
383,319
221 ,825
52
128,540
2,200
2,885,669
Expenditures:
Current:
General government
Public safety
Transportation
Culture and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
6,198
45,845
65,015
438,261
555,319
Excess (Deficiency) of Revenues Over (Under)
Expenditures
2,330,350
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
845,052
(3,039,204)
(2,194,152)
Excess of Revenues and Other Finance Sources Over
(Under) Expenditures and Other Uses
136,198
2,702,739
Fund Balances, October 1, 1994
$ 2,152,117
383,313
205,502
52
128,535
2,200
2,871,719
$
2,384
(6)
(16,323)
(13,950)
6,198
13,402
184,263
350,980
32,443
(119,248)
87,281
554,843
2,316,876
(13,474)
845,052
(3,025,555)
(2,180,503)
13,649
13,649
136,373
2,702,739
$ 2,838,937 $ 2,839,112 $
Fund Balances, September 30, 1995
See accompanying notes to financial statements. ~~~iLDiitiJDfNj~~W [Q)/F3 ~lFlT
FOR DISCUSSION PURPOSES ONLY
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(5)
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476
175
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Debt Service Fund Capital Projects Fund
I Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
I $ $ $ $ $ $
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I 97,639 105,065 7,426 113,168 113,163 (5)
5,011 5,011
97,639 105,065 7,426 118,179 118,174 (5)
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I 2,369,149 440,885 1,928,264
235,000 235,000
727,888 720,763 7,125
I 962,888 955,763 .7,125 2,369,149 440,885 1,928,264
I (865,249) (850,698) 14,551 (2,250,970) (322,711) 1 ,928,259
881,728 881,703 (25)
I 881,728 881,703 (25)
I 16,479 31,005 14,526 (2,250,970) (322,711) 1,928,259
1,962,649 1 ,962,649 2,250,970 2,250,970
I $ 1,979,128 $ 1,993,654 $ 14~~~_~~r8ID)~~~~~'259
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FOR DISCUSSION PURPOSES ONL Y
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Continued
I 9
CITY OF WINTER SPRINGS, FLORIDA
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - CONTINUED
ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 1995
Totals
(Memorandum Only)
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes and special assessments
Licenses, permits and fees
Intergovemmental revenues
Charges for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
$ 4,953,868
886,604
2,037,117
132,335
155.052
454,917
610,675
9,230,568
Expenditures:
Current:
General govemment
Public safety
Transportation
Culture and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
1 ,698.712
4,090,208
935,891
794,343
3,116,873
349,710
738,041
11,723,778
Excess (Deficiency) of Revenues Over (Under)
Expenditures
(2,493.210)
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
3,025,718
(3,039,204)
(13,486)
Excess of Revenues and Other Finance Sources Over
(Under) Expenditures and Other Uses
(2.506,696)
8,527,503
Fund Balances, October 1, 1994
$ 4,874,118
857,024
2,020,651
132,191
154,556
462,256
610,659
9,111,455
1,524,584
3,556,352
1,011,424
706,716
1,114,097
348,965
729,526
8,991 ,664
119,791
3,025,555
(3,025,555)
119,791
8,527,503
$
(79,750)
(29,580)
(16,466)
(144)
(496)
7,339
(16)
(119,113)
174,128
533,856
(75,533)
87,627
2,002,776
745
8,515
2,732,114
2,613,001
(163)
13,649
13,486
2,626,487
Fund Balances, September 30, 1995
$ 6,020,807 $ 8,647,294 $ 2,626,487
See accompanying notes to financial statements. [p)~~[L~~~~~~W [Q)~~~lr
FOR DI~CUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
COMBINED STATEMENT OF REVENUES. EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE
PROPRIETARY AND FIDUCIARY FUND TYPES
Year Ended September 30, 1995
Proprietary
Fund Type
Enterprise
Funds
Operating Revenues:
User charges
Contributions
Investment income
Miscellaneous income
Total operating revenues
$ 5,341,922 $
5,341,922
Operating Expenses:
Salaries and benefits
Materials and supplies
Depreciation and amortization
Other operating expenses
Benefit payments
Commissions and service fees
Total operating expenses
1,036,908
357,559
1 ,372,650
1,601,756
4,368,873
973,049
Operating Income
Non-Operating Revenues (Expenses):
Interest income
Interest expense
Gain on disposal of fixed asset
Other
322,020
(1,373,597)
8,516
92,036
(951,025)
22,024
989,295
Total non-operating revenues (expenses)
Net Income
Retained Earnings/Fund Balance, October 1, 1994
Retained Earnings/Fund Balance, September 30, 1995
Fiduciary
Fund Type
Pension
Trust
240,006
2,095
2,481
244,582
48,503
8,917
57 ,420
187,162
187,162
1,172,610
Totals
(Memorandum
Only)
$
5,341,922
240,006
2,095
2,481
5,586,504
1,036,908
357,559
1 ,372,650
1,601,756
48,503
8,917
4,426,293
1 ,160,211
322,020
(1,373,597)
8,516
92,036
(951,025)
209,186
$ 1,011,319 $ 1,359,772 $ 2,371,091
2,161,905
See accompanying notes to financial statements.
[PiFt~iLDIM1DfM~iFtW [Q)~~~1t
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS. FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPE
Year Ended September 30. 1995
Enterprise
Funds
Increase (Decrease) in Cash and Cash Equivalents:
Cash Flows from Operating Activities:
Operating income
Adjustments to reconcile operating income to net cash provided by
operating activities:
Depreciation and amortization
Provision for uncollectible accounts
Changes in assets and liabilities:
Increase in accounts receivable
Increase in inventory
Increase in due from other funds
Increase in accounts payable
Decrease in accrued liabilities
Increase in due to other funds
Increase in customer deposits
Decrease in accrued compensated absences
Total adjustments
Net cash provided by operating activities
$ 973,049
1,372,650
16,601
(86,582)
(19)
(9,013)
5,850
(72,181)
27,867
36,458
(9,162)
1,282,469
2,255,518
(1,045,792)
(1,373,597)
(95,000)
(2,514,389)
3,694,413
(5,129,486)
322,020
(1,113,053)
(1 ,371 ,924}
4,589.670
$ 3,217,746
Cash Flows from Capital and Related Financing Activities:
Acquisition and construction of capital assets
Interest paid on revenue bonds
Principal payments on bonds
Net cash used in capital and related financing activities
Cash Flows from Investing Activities:
Sale of investments
Purchase of investments
Eamings on cash, cash equivalents and investments
Net cash used in investing activities
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, October 1, 1994
Cash and Cash Equivalents, September 30, 1995
Noncash Investing, Capital and Financing Activities:
During the year ended September 30, 1995, the City recorded as contributed capital utility system
equipment donated by developers totalling $7,537,23~)~ ~fbDiMJD[N]~~W [Q)~~[P;lr
See accompanying notes to financial statements. FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Year Ended September 3D, 1995
1. Summary of Significant Accounting Policies:
The City of Winter Springs, incorporated in 1959, is located in Seminole County and is a political subdivision
of the State of Florida. The legislative branch of the City is composed ofa five-member elected Commission.
The City Commission is governed by the City Charter and by,state and local laws and regulations. The City
Commission is responsible for the establishment and adoption of policy. The execution of such policy is the
responsibility of the City Manager appointed by the Commission.
The accounting policies of the City of Winter Springs conform to generally accepted accounting principles as
applicable to units oflocal governments. The following is a summary of the more significant policies:
A. ReDortine Entity - In evaluating the City as a reporting entity, management has addressed all potential
component units (traditionally separate reporting entities) for which the City mayor may not be
financially accountable and, as such, be includable within the City's financial statements. In
accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, the City (the
primary government) is financially accountable if it appoints a voting majority of the organization's
governing board and (1) it is able to impose its will on the organization or (2) there is a potential for the
organization to provide specific financial benefit to or impose specific financial burden on the City.
Additionally, the primary government is required to consider other organizations for which the nature
and significance of their relationship with the primary government are such that exclusion would cause
the reporting entity's financial statements to be misleading or incomplete. As a result of applying the
criteria of GASB Statement No. 14, no component units exist which would require inclusion in the
City's financial statements.
B. Fund Accountine - The accounts of the City are organized on the basis of funds and account groups,
each of which is considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity,
revenues and expenditures, or expenses as appropriate. Government resources are allocated to and
accounted for in individual funds based upon the purpose for which the resources are to be spent and
the means by which spending activities are controlled. The purposes of the City's various funds and
account groups are as follows:
Governmental Funds:
General Fund - The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue sources (other than major capital projects) that are legally restricted to
expenditures for specific purposes.
Debt Service Funds - The Debt Service Funds are used to account for the accumulation of
resources for the payment of general long-term debt principal, interest and related costs.
~fP3~~JiMJU[NJ~fP3W [Q)fP3~[?lf
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS,FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30, 1995
1. Summary of Significant Accounting Policies - Continued:
Governmental Funds - Continued:
C~ital Proiects Funds - The Capital Projects Funds are used to account for the portion of the
proceeds of the Improvement Refunding Revenue Bonds -Series 1989 and Series 1993. These
monies are being used for the acquisition and construction of civic and recreational facilities, a
police station complex, a fire station, and a public works complex.
PrO,prietary Fund:
Enteq?rise Funds - The Enterprise Funds are used to account for operations that are financed
and operated in a manner similar to private business enterprises where the intent of the City
Commission is that the costs (expenses, including depreciation) of providing services to the
general public be financed or recovered primarily through user charges. The City's enterprise
funds are a water and sewer utility and a stormwater utility.
Fiduciary Funds:
Trust and A~ency Funds - The Pension Trust Fund is utilized to account for the financial
transactions of the City-administered pension plan. The Agency Fund is used to account for
assets held by the City as an agent for the City employees under the deferred compensation
plan.
Account Groups:
General Fixed Assets - The General Fixed Assets Account Group is used to account for the
fixed assets of the City, except those of the proprietary funds.
General Long-Term Debt - The General Long-Term Debt Account Group is used to account
for the outstanding principal balances on any general or special obligation bonds, notes,
compensated absences or other long-term debt of the City, except for long-term debt of the
proprietary funds.
C. Measurement Focus -
Governmental Fund Types - General, Special Revenue, Debt Service and Capital Projects Funds are
accounted for on a "spending" or "financial flow" measurement focus. This means that only current
assets and current liabilities are generally included on the balance sheets. Accordingly, the reported
unreserved fund balances (net current assets) are considered a measure of available, spendable or
appropriable resources. Governmental Fund Type operating statements present increases (revenues
and other financing sources) . and decreases (expenditures and other financing uses) in net current
assets.
[p)~~[L~(M]~~~~W [Q)~~~~
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
1. Summary of Significant Accounting Policies - Continued:
C. Measurement Focus - Continued -
Proprietal)' Fund T)1)e - The Enterprise Fund is accounted for on an "income detennination"
measurement focus. Accordingly, all assets and liabilities are included on their respective balance
sheets, and the reported fund equity of each fund (total reported assets, less total reported liabilities)
provides an indication of the economic net worth of the funds. The operating statements for the
Proprietary Fund Type (on an income detennination measurement focus) report increases (revenues)
and decreases (expenses) in total economic net worth.
Fiducial)' Fund TJ3>es - The Pension Trust Fund is accounted for like proprietary funds. The Agency
Fund is accounted for like governmental funds; however, it is custodial in nature (assets equal
liabilities) and does not involve the measurement of results of operations.
Account Gr01.1PS - The General Long-Term Debt and General Fixed Assets Account Groups are
concerned only with the measurement of financial position. They are not involved with the
measurement of results of operations. Long-term debts which are not intended to be financed through
Proprietary Funds are accounted for in the General Long-Term Debt Account Group. Fixed assets
which are not used in Proprietary Fund operations are accounted for in the General Fixed Assets
Account Group.
D. Basis Q,f Accountin~ - Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. Basis of accounting relates to the
timing of the measurements made, regardless of the measurement focus applied.
All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the
modified accrual basis, revenues are recognized when they become measurable and available as net
current assets. Revenues susceptible to accrual include intergovernmental revenues and investment
earnings.
Expenditures are generally recognized under the modified accrual basis of accounting when the related
fund liability is incurred, except for unmatured principal and interest on general long-term debt which
is recognized when due.
The Proprietary Funds are accounted for using the accrual basis of accounting. Their revenues are
recognized when they are earned and their expenses are recognized when they are incurred.
The Pension Trust Fund is accounted for using the accrual basis of accounting. The Agency Fund is
accounted for on the modified accrual basis.
E. Cash Equivalents - The City considers all highly liquid. investments (including restricted assets) with a
maturity of three months or less when purchased to be cash equivalents.
~~~~~~~~~~W [Q)~~[p1F
FOR DISCUSSION PURPOSES ONLY
15
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
1. Summary of Significant Accounting Policies - Continued:
F. Investments - The City Charter and bond resolutions authorize the City to invest in direct obligations of
or obligations guaranteed by the United States of America., obligations of specific agencies of the
United States of America., investments fully secured by the Federal Deposit Insurance Corporation or
collateral, secured repurchase agreements, pre-refunded obligations, money market, commercial paper
and the Local Government Surplus Funds Trust Fund. All investments must be insured, registered or
held by the City or a trustee in the CitYs name. Investments are stated at cost or amortized cost plus
accrued interest. The City's investments were limited to U.S. Government Obligations, certificates of
deposit, money market accounts, and overnight repurchase agreements and commercial paper during
the current fiscal year. Investments of the City's Pension Trust Fund and Agency Fund consist of
bonds, common stocks, debentures and short-term investments stated at firir market value based on
quoted prices at the end of the fiscal year.
The City invests in certificates of deposit which are insured up to 5100,000 by the FDIC. Amounts in
excess of S100,000 are collateralized by U.S. Government securities held in the Public Deposit
Security Trust Fund.
G. Receivables -
(1) Pro.perty Taxes - Under Florida law, the assessment of all properties and the collection of all
county, municipal and school board property taxes are consolidated in the offices of the County
Property Appraiser and County Tax Collector. The laws of the State regulating tax assessments
are also designed to assure a consistent property valuation method statewide. State Statutes pennit
municipalities to levy property taxes at a rate of up to 10 mills. The millage rate assessed by the
City for the fiscal year ended September 30, 1995 was 3.7626 mills.
Property taxes are billed and collected within the same fiscal period, and are reflected on the
modified accrual basis. Ad valorem taxes on property values have a lien assessment date of
January 1, with the millage established during September. The fiscal year for which taxes are
levied begins October 1. Taxes are billed in November (levied) with a maximum discount available
through November 30, and become delinquent April!. During May of each year, the certificates
for unpaid taxes are sold by the County and the proceeds remitted to the City. Therefore,
delinquent taxes, if any, are inunaterial at September 30, 1995. The City is not pennitted to
appropriate future tax collections. Therefore, otherwise measurable revenues are not accrued
because they are unavailable for current appropriations.
(2) Accounts Receivable - The Water and Sewer Utility Fund operating revenues are recognized on the
basis of cycle billings rendered monthly. Revenues for services delivered during the last month of
the applicable reporting period that have not been read are accrued.
(3) Allowance for Doubtful Accounts - The City provides an allowance for water and sewer accounts
receivable that may become uncollectible. At September 30, 1995, this allowance was 598,690.
1fJ~~fLa~DfNJ~~W fP)~~fPlJ
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
1. Summary of Significant Accounting Policies - Continued:
H. Inventories - Inventories are stated at the lower of cost or market with cost determined on the first-in.
first-out method. Inventories in the General and Enterprise Funds consist of expendable supplies held
for consumption. The cost is recorded as an expenditure at the time inventory items are used
(consumption method). Reported inventories within the governmental funds are offset by a fund
balance reserve which indicates that they do not constitute "available spendable resources" even though
they are a component of net current assets.
I. ProDerty. Plant and EquiDment -
(1) Property, plant and equipment purchased in the Governmental Fund Types are recorded as capital
outlay expenditures at the time of purchase. Such assets are capitalized at cost in the General
Fixed Assets Account Group, except for certain improvements other than buildings
("infrastructure") such as roads, bridges, curbs and gutters, streets and sidewalks, drainage
systems and lighting systems. Donated and confiscated assets are recorded in the general fixed
assets at their fair market value at the time received:
No depreciation has been provided on plant and equipment recorded in the General Fixed Asset
Account Group.
(2) Property, plant and equipment of the Proprietary Fund Type are recorded at cost. Donated
property, plant and equipment are capitalized at their fair market value at the time received.
Depreciation is provided using the straight-line method over the estimated useful lives of the
various classes of depreciable assets. The estimated useful lives of the various classes of
depreciable assets are as follows:
Asset
Years
Utility System
Equipment
Vehicles
30 years
5 years
3 years
J. Unamortized Bond Costs - Costs associated with the issuance of revenue bonds are amortized over the
life of the bonds using the straight-line method of accounting, which approximates the interest method.
K. D~ferred Revenues - Deferred revenues reported in applicable Governmental Fund Types represent
unearned revenues or revenues which are measurable but not available and, in accordance with the
modified accrual basis of accounting, are reported as deferred revenues. The deferred revenues will be
recognized as revenue in the fiscal year they are earned or become available.
~~~lLa~DfNj~~W [Q)~~fFlJ'
FOR DISCUSSION PURPOSES ONLY
17
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
1. Summary of Significant Accounting Policies - Continued:
L. Accrued ComlJensated Absences - Employees earn vacation leave at the rate of 10 days annually for
the first five years of service. Beginning with the first month of the sixth year of service, vacation
leave is earned at the rate of 15 days annually. Accrued vacation leave shall not exceed 30 days for
employees with less than 10 years of service, or 45 days for employees with more than 10 years of
service. In the event oftennination, no employee shall be paid for more than 15 days vacation leave.
The accrued liability for accumulated annual vacation leave and related benefits is recorded in the
proprietary fund when incurred. The liability for Governmental Fund Types is recorded in the general
fund for amounts expected to be paid during the next fiscal year. The remainder is recorded in the
General Long-Term Debt Account Group.
Employees earn sick leave at the rate of 12 days per year. There is no limit on the accumulation of sick
leave; however, sick leave is forfeited upon tennination of employment, other than death or retirement.
Liability for sick leave is recorded when it is determined payment is probable (i.e., an employee dies or
retires). The accrued liability for accumulated sick leave and related benefits is recorded in the
proprietary fund when incurred. The liability for Governmental Fund Types is recorded in the General
Long-Term Debt Account Group.
M. Contributions - The contributions accounted for in the Proprietary Fund represent the estimated
equipment costs incurred by customers and developers for connection to the City's utility system, as
well as monies contributed by customers for purchase of certain equipment. Depreciation expense on
contributed fixed assets is reflected in the statement of revenues, expenses and changes in retained
eammgs.
N. Encumbrances - Encumbrances represent commitments related to unperformed contracts for goods or
services. Encumbrance accounting, under which purchase orders, contracts and other commitments for
the expenditure of resources are recorded to reserve that portion of the applicable appropriation, is
utilized in all governmental funds. Encumbrances outstanding at year end are reported as reservations
of fund balances and do not constitute expenditures or liabilities because the commitments will be
honored during the subsequent year.
O. Bud.fet and Budfetary Accountinf - The City follows the procedures set forth below in establishing the
budgetary data reflected in the financial statements:
(1) On or before July 1st of each year, the City MaIlager submits a Proposed Budget to the City
Commission for the fiscal year beginning the following October 1st. The Budget includes
proposed revenues and expenditures, and a description of capital activities for the ensuing fiscal
year.
(2) The City Commission then holds informal workshops. Each.item in the budget is thoroughly
discussed, and the public is invited to participate.
(3) On or before September 15th of each year, the public hearings are completed and the Commission
adopts the final budget and establishes the ad valorem tax millage.
(4) The budget may be formally amended bm~1lD~~W [Q)~ ~~c-1Y
FOR DISCUSSION PURPOSES ON~Y
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30, 1995
1. Summary of Significant Accounting Policies - Continued:
O. Bud-fet and Bud,fetary Accountinf: - Continued -
(5) The City Manager is authorized to transfer budgeted amounts between accounts within a
department. At any time during the fiscal year, the City Manager may transfer part or all of any
unencumbered appropriation among programs within one department. The transfer of
unencumbered appropriations from one department to another requires an ordinance by City
Commission.
(6) Budgets are adopted on a basis consistent with generally accepted accounting principles, except
that proceeds from capital leases and corresponding capital outlay expenditures are not budgeted
and debt service expenditures on capital leases are budgeted as departmental expenses. Budgeted
amounts are as originally adopted, or as amended by the City Commission.
(7) Appropriations lapse at the end of the fiscal year.
(8) Budgetary control is established at the departmental level for the General Fund, and at the fund
level for the Special Revenue, Debt Service, Capital Projects, and Enterprise Funds.
(9) During the year ended September 30, 1995, the expenditures were in excess of the legally adopted
budget in the Transportation Improvement Fund.
P. Total Columns on Combined Statements - Tolal columns on the combined statements are captioned
"Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in
these columns do not present financial position or results of operations in confonnity with generally
accepted accounting principles. Neither is such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
2. Cash and Investments:
Following are the components of the City's cash and investments at September 30, 1995:
Unrestricted
Restricted
Total
Cash and cash equivalents
Investments
$ 9,482,436
3,500,703
$ 2,160,745
2,566,070
$11,643,181
6,066,773
$ 12,983,139 $ 4,726,815 $ 17,709,954
Devosits - The City maintains separate bank accounts for all funds. At September 30, 1995, the carrying
amount of the City's deposits was $8,403,295, made up of demand deposits, money market accounts and
certificates of deposit, all of which are authorized under Florida Statutes and various bond covenants. The
City's deposits at September 30, 1995 were fully insured by either federal depository insurance or by
collateral pursuant to the Public Depository Security Act of the State of Florida.
~~~lLa~afM~~W [D)~~~'ir
FOR DISCUSSION PUR~OSES ~~L ~
19
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
2. Cash and Investments - Continued:
Ovemt~ht Reourchase Afreements - Overnight repurchase agreements consist of excess cash balances
invested on a daily basis under agreements with local financial institutions, and are considered cash
equivalents for financial statement purposes. Repurchase agreements are for the sale and repurchase of
securities guaranteed by the United States Government. These are categorized below as to the level of risk
assumed by the City.
Investments - The City's investments are authorized by the Florida Statutes as well as various bond
covenants. Investments are categorized below to give an indication of the level of risk assumed by the City at
September 30, 1995. Category 1 includes investments that are insured or registered or investments for which
the securities are held by the City or its agent in the City's name.
Overnight Repurchase Agreements
Category Canying Market
1 Amount Value
$ 2,699,225 $ 2,699,225 $ 2,699,225
3,495,488 3,495,488 3,429,959
313,188 313,188 304,793
$ 6,507,901 6,507,901 6,433,977
8.403,295 8,403.295
$ 14,911,196 $ 14,837,272
U.S. Government Obligations:
Treasury Notes
Treasury Bills
Deposits
Total Cash and Investments
In addition to the cash, cash equivalents and investments listed above, the City's cash and cash equivalents
and investments balances at September 30, 1995 contains employee deferred compensation plan (see Note 9)
cash and cash equivalents of $1,203,172 and Pension Trust Fund (see Note 8) cash, cash equivalents, and
investments of $1,595,586, all of which are carried at market value. These are held separately from those of
other City funds and are held by the plan ~m~~~e'[Q)~!~[PU
FOR DISCUSSION PURPOSES ONLY
3. Interfund Balances:
Individual fund interfund receivable and payable balances at September 30, 1995 are as follows:
Due From Due To
Other Funds Other Funds
General Fund $ 118,864 $ 26,587
Special Revenue Funds 16,314 195
Enterprise Funds 42,255 160,923
Trust and Agency Funds 10,272
$ 187,705 $ 187,705
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
4. Property, Plant and Equipment:
A summary of the changes in Proprietary Fund Type property, plant and equipment for the year ended
September 30, 1995 follows:
Balances Balances
October 1, September 30,
1994 Additions Deletions 1995
utility system $ 25,488,400 $ 2,586,833 $ 2,929,889 $ 25,145,344
Stormwater system 9,428,815 9,428,815
Office building 703,531 14,015 80,000 637,546
Office furniture and equipment 523,736 51,127 18,339 556,524
Vehicles 326,966 35,379 362,345
Land 4,383,591 4,383,591
Construction in progress 435,068 597,921 573,689 459,300
Total 41,290,107 3,285,275 3,601,917 40,973,465
Less accumulated depreciation (8,697,057) (1,336,281) (45,548) (9,987,790)
$ 32,593,050 $ 1 ,948,994 $ 3,556,369 $ 30,985,675
The cost of utility system equipment and stonnwater system assets contributed by developers is estimated to
the extent that actual cost information is not available. Estimates are based on known costs of similar
equipment. At September 30, 1995, estimated amounts included in the utility and stonnwater systems totalled
$11,383,769.
The following is a summary of changes in general fixed assets for the year ended September 30, 1995:
Balances Balances
October 1, September 30,
1994 . Additions Deletions 1995
Land $ 2,329,144 $ $ $ 2,329,144
Buildings 2,106,529 343,570 2,450,099
Furniture and equipment 1,565,627 311,611 74,081 1,803,157
Vehicles 1,439,258 113,355 13,853 1,538,760
Park and recreational facilities 2,462,499 26,259 2,488,758
Construction in progress 124,576 439,820 343,569 220,827
$ 10,027,633 $ 1,234,615 $ 431,503 $ 10,830,745
~~[g!LDfMJllfM~~Y! 1Q)~~~'jJ
FOR DISCUSSION PURPOSES ONL ~
21
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30, 1995
5. Long-Term Debt:
A. Chanres in General Lon.e-Term Debt - A summary of changes in general long-term debt for the year
ended September 30, 1995 follows:
Balance
Odober 1,
1994
Balance
September 30,
Retirements 1995
Additions
Improvement Refunding
Revenue Bonds.
Series 1989
Series 1993
Capital Lease Payable
Accrued Compensated
Absences
$ 3,400,000
9,365,000
175,257
$
$
180,000 $ 3,220,000
55,000 9,310,000
115,390 59,867
153,742
350,390 $ 12,743,609
14,872
14,872
138,870
$ 13,079,127
$
$
TOTAL
B. ImDrovement Refimdin.e Revenue Bonds - The major provisions of the resolutions authorizing these
bonds are as follows:
(1) Establishment and maintenance of various funds.
The Debt Service Fund records all the debt service requirements of the issue, and includes the
sinking fund and reserve accounts.
(2) Restriction on the use of cash in order of priority.
(a) Payment of current debt service requirements.
(b) Payment of reserve requirements up to the maximum of $468,922 and $888,121 for the Series
1989 and 1993 bonds, respectively.
(c) Any remaining revenue can be used for any lawful purpose.
(3) Early redemption.
The bond resolutions provide for the City's optional early redemption of outstanding bonds at call
rates varying from 100% to 102% of the instrument's face value plus accrued interest. depending
on the call date. The redemption period begins on October 1, 1998 and October 1, 2004 for the
Series 1989 and 1993 bonds, respectively.
~~~~u~~~ffi\~W [Q)~ffi\GSl
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, .FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
5. Long-Term Debt - Continued:
(4) Investment restrictions.
Improvement Revenue Refunding Bonds. Series 1989:
Debt Service Fund and Excise Tax Fund monies may be invested in authorized investment
securities which mature not later than the dates on which the monies on deposit will be needed for
the purpose of such fund.
Improvement Revenue Refunding Bonds Series 1993:
Excise Tax Fund and Debt Service Fund monies, excluding Reserve Account monies, may be
invested in authorized investment securities which mature not later than the dates on which the
monies on deposit will be needed for the purpose of such fund.
Reserve Account monies may be invested in securities maturing not later than five years from the
date of their deposit into the Reserve Account.
(5) Pledge of revenues.
The bonds and related interest are payable solely from and collateralized by a lien on the Public
Service Tax that the City is entitled to levy on certain utility sales and Franchise Fees levied by the
City for a thirty-year electric franchise granted by the City in 1984.
The Improvement Refunding Revenue Bonds consisted of the following at September 30, 1995:
Principal
Balance
Interest Outstanding at
Rates and Original September 30,
Description Dates Maturity Amount 1995
Improvement Refunding
Revenue Bonds - 6.70%-7.45% 10/1/95 -
Series 1989 (4/1 & 10/1) 1 0/1/07 $ 4,020,000 $ 3,220,000
Improvement Refunding
Revenue Bonds - 3.00%-5.5% 10/1/95 -
Series 1993 (4/1 & 10/1) 10/1/18 $ 9,365,000 $ 9,310,000
U ';'G)i02!.:::;n rU!I~\iJn, rM (;\.\ fD)\\7 P11rU\ Jl1PU?;; i'?;;:>\ iSlr
:--UuLSlS 'lJ\~LfuU\J~U-=U U L::::/ uLrUU U
FOR DiSCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
5. Long-Term Debt - Continued:
C. Water and Sewer Rf;;!undine Revenue Bonds and Water and Sewer Revenue Bonds - The major
provisions of the resolutions authorizing the Water and Sewer Refunding Revenue Bonds and Water
and Sewer Revenue Bonds are as follows:
(1) Establishment and maintenance of various funds.
(a) The Revenue Fund records all gross revenues derived from operation of the utility.
(b) The Debt Service Fund (including principal; interest and redemption accounts) records all
monies to meet current debt service and reserve requirements.
(c) The Sewer Renewal and Replacement Fund iecords monies for paying cost of extensions,
enlargements, additions, or replacement of capital assets of the utility.
(2) Restrictions on the use of cash from operating revenue in order of priority.
(a) Transfer of developer agreement payments into a Developer Agreement Payments Account
(Note 10),.
(b) Payment of current operating and maintenance expenses.
(c) Payment of current debt service and reserve requirements.
(d) Payments to Renewal and Replacement Funds at one-twelfth of five percent of gross revenues
received in the prec.ening fiscal year, until the amount on deposit equals or exceeds:
Five percent of gross revenues of the preceding fiscal year attributable to the west utility
plant.
(3) Early redemption.
Early redemption is provided for at a call rate varying from 100% to 102% of the face amount of
the bonds.
[0~~~u~~G~~~W [D~&~1F
FOR DISCUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANqlAL STATEMENTS - CONTINUED
Year Ended September 30, 1995
5. Long-Term Debt - Continued:
(4) Investment restrictions.
Water and Sewer Refunding Revenue Bonds, Series 1991:
(a) The Revenue Fund and the Debt Service Fund may invest in investment securities which
mature not later than the dates on which the monies on deposit therein will be needed for the
purpose of such fund.
(b) The Renewal and Replacement Fund may invest in investment securities with no more than five
years maturity.
(c) The Reserve Account of the Debt Service Fund may invest in investment securities which
mature no later than the last maturity date of the bonds.
Water and Sewer Refunding Revenue Bonds, Series 1992:
Monies in any fund or account may be invested in investment securities which mature no later than
the dates on which the monies will be needed for the purpose of such fund or account.
(5) Pledge of revenues.
The bonds are payable solely from and collatera1ized by the net revenues of the system. Net
revenues include all rates and charges received from customers, connection reservation fees, and
interest or investment income, less costs for operation and maintenance of the systems. In addition,
for the Water and Sewer Revenue Bonds, net revenues include amounts received under a certain
fifteen-year developer agreement (see Note 10).
~)~ ~n ~O~O~ 0 roJW7 roVO) fE\ rsCf=[
. \J t~ In) lJ ,-=_') Lrll U-0. u [
FOR DfSCUSSION PURPOSES ONLY
25
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATE~ENTS - CONTINUED
Year Ended September 30, 1995
5. Long-Term Debt - Continued:
The Water and Sewer bonds consisted of the following at September 30, 1995:
Description
Interest
Rates and
Dates
Original
Amount
Maturity
Water and Sewer
Refunding Revenue
Bonds - Series 1991
Less: Original Issue
Discount, net of
amortization
4.5%-6.75%
(4/1 & 10/1) 10/1/91-10/1/21 $ 6,915,000
6,915,000
Water and Sewer
Refunding Revenue
Bonds - Series 1992
Less: Original Issue
Discount, net of
amortization
4.4%-6.125%
(4/1 & 10/1) 10/1/92-4/1/20
16,015,000
16,015.000
$ 22,930,000
Less current portion
~~~f6u~~~~~w [Q)~~~U
FOR DiSCUSSION PURPOSES ONLY
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Principal
Balance
Outstanding at
September 30,
1995
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$ 6,610,000
(155,085)
6,454,915
16,015,000
(155,266)
15.859,734
22,314,649
(415,000)
$ 21,899,649
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
5. Long-Term Debt - Continued:
D. Defeased Debt - The following bonds were legally defeased. Since invesbnents COnsIstIng of
governmental obligations are held in escrow for payment of principal and interest, the bonds are not
liabilities of the City. The principal balance of the defeased general long-term debt and enterprise fund
bonds at September 30, 1995 follows:
General Long-Term Debt:
Principal
Balance
Amount Outstanding at
Original Originally September 30,
Issue Date Description Issued 1995
May 1,1984 Improvement Revenue Bonds
- Series 1984 $ 3,505,000 $ 465,000
May 1, 1989 Improvement Refunding Revenue
Bonds - Series 1989 4,980,000 4,980,000
$ 8,485,000 $ 5,445,000
Proprietary Fund:
Principal
Balance
Amount Outstanding at
Original Originally September 30,
Issue Date Description Issued 1995
September 1, 1984 Water and Sewer Revenue'
Bonds - Series 1984 $ 5,035,000 $ 480,000
April 1, 1990 Water and Sewer Revenue
Bonds - Series 1990 12,300,000 12.300,000
$ 17.335,000 $ 12.780,000
~[Pi~~uLtUu~~~[PiW [Q)~l~~'-lf
FOR DiSCUSSION PURPOSES ONLY
27
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
5. Long-Term Debt - Continued:
E. Obliration Under Futures A~reement - In connection with the City's acquisition of the assets of
Seminole Utility Company during fiscal year ended September 30, 1990, the City entered into a futures
agreement with the seller whereby the City is obligated to pay the seller an amount, in accordance with
the agreement, for future connections to the east utility plant up to a maximum of $4,967,020 over a
period of fifteen years. The obligation was included in the original purchase price of the east utility
plant during the fiscal year ended September 30, 1990. During the fiscal year ended September 30,
1995, the City revised their estimates of probable connections under the agreement, resulting in a
revised estimated futures obligation of $1,763,006. This change in estimate resulted in an adjustment
of the original purchase price of the utility.
As connections under the futures agreement are made, the futures liability is deposited in a segregated
account for payment to the seller on April 30 of the following year. At September 30, 1995,
outstanding balances were as follows:
Total Obligation
Less Current Portion (connections made under the
futures agreement as of September 30, 1995)
$ 1,763,006
(563,006)
$ 1 ,200,000
[}2)~~~uU0Ju~~~~W ~~ffi~~U
FOR D~5CUSSION PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
5. Long-Term Debt - Continued:
F. Annual Requirements to Maturity - The annual debt service requirements to amortize all bonded debt
of the City outstanding as of September 30, 1995 are as follows:
G_ral Long-Tenn Debt EntIlrprise Fund
Im~ Im~ Wnw and s.- wnw and s.-
FISCllI Vea, Relunding R_ Refunding R_ RWrlding R__ Refunding R_ T Clllll Annual
Ending BoncIa, Series 1l18ll BoncIa, SeriM 1893 Bonda, Series 11181 Bonda, Series 11182 Debt SeMce
September 30, Principal Interest Principal Interest Principal 1- Principal 1- Requi_
1996 S 1115,000 S 229,550 S 50,000 S 478,413 S 100,000 S 426,1110 S 315,000 S lI32,228 S 2, n4,3711
1997 150,000 217,437 110,000 473,582 105.000 420,257 330,000 D17,7811 2,n4,085
1998 212, 150 275,000 488,240 110,000 413,1133 345,000 llO2,OO1 2,n4,324
1999 212, 150 285,000 4S4,8ll3 115,000 407.147 360,000 8&4,721 2, 718.D11
2000 255,000 202,870 45,000 W,8n 125,000 3llll,048 375,000 8ll5.871 2,7111,481
2001 275,000 183,821 45,000 445,803 135,000 3D1,412 3ll5,000 845,753 2,7111,7811
2002 295,000 182,ll37 45,000 443,733 140,000 382,733 420,000 823,ll48 2,713,348
2003 315,000 140,388 50,000 441,422 150,000 373,282 440,000 1lIXJ,727 2,710,7118
2OG4 335,000 118,317 55,000 438,745 155,000 3&3,3&3 485,000 n8,05ll 2,704,4&4
2005 385,000 110,418 55,000 435,ll4O 170,000 352,312 490,000 749,429 2,708,009
2008 390,000 82,482 80,000 432,ll82 180,000 340,388 520,000 720,502 2,708,334
2007 420,000 32,408 80,000 4211,813 1110,000 328,037 545,000 ll8ll,348 2,894,807
2008 225,000 8,382 290,000 420,1125 200,000 315,038 580,000 1155,871 2,894,8111
2009 545,000 3118,7llll 220,000 300,737 1115,000 1118,714 2,899,157
2010 575,000 38lI,3Oll 225,000 2811,113 1150,000 581,131 2,lI8ll,550
2011 805,000 338,331 245,000 270,187 llllO,ooo 540,281 2,ll88,77ll
2012 840,000 305,1150 255,000 253,1113 735,000 4llll,7118 2,888,082
2013 870,000 271,283 280,000 235,412 780,000 450,4114 2,887,1811
2014 705,000 234,288 295,000 218,23& 825,000 401,341 2,878,887
2015 745,000 104,412 310,000 1118,087 875,000 348,278 2,tJtJfiJ,m
2018 785,000 152,337 340,000 173,138 lI3O,ooo 294,000 2,874,475
2017 830,000 110,000 360,000 148,837 llllO,ooo 235,200 2,874,037
2018 870,000 87,500 385,000 122.850 1,050,000 1n,ns 2,888,075
2019 915,000 22.875 410,000 115,175 1,115,000 108,422 2,8&4,4n
2020 440,000 85,475 1,180,000 n,275 1,757,750
2021 470,000 33,750 503,750
2022 500,000 500,000
S 3,220,000 S 1,871,390 S 11,310,000 S 8,272,711 S 11,810,000 S 7,311,352 S 18,015,000 S 14,883,984 S 117,494,437
6. Capital Lease Obligation:
During the 1992-93 fiscal year, the City entered into a capital lease agreement for the purchase affire trucks,
which provide for annual principal and interest payments as follows:
Fiscal Year Ending September 30,
Principal
Interest
Total
1996
$
59,867 $
1,497 $
61,364
Principal payments of$115,390 and interest payments of$7,338 were made during the year.
~~~.~;JU~'~U~~~W [Q)~~~U
FOR D~S'CUSS~ON PURPOSES ONLY
29
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
7. Contributed Capital:
Contributed capital recorded in the Enterprise Funds at September 30, 1995 includes Contributions In Aid of
Construction (CIAC) and utility system and stormwater utility equipment donated by customers and
developers. CIAC represents advances made to the west utility plant by its customers and developers prior to
its acquisition by the City on October 6, 1984. The City records as contributed capital equipment donated by
developers upon physical connection to the water and sewer systems since acquis~tion of the west utility plant
in 1984 and the east utility plantin 1990, as well as all stormwater system assets donated by developers,
Contributed capital is recorded at cost.
CIAC and Land Donated by Developers
Prior to October 6, 1984:
Donated land
CIAC
$ 28,000
1,766,805
1,794,805
Capital Contributions Subsequent to
Odober 6, 1984:
Donated utility equipment
Donated stormwater assets
CIAC
3,669,527
5,869,437
50,000
9,588,964
$ 11,383,769
Total Contributed Capital
8. Defined Contribution Employee Pension Plan:
The City maintains a single employer, defined contribution pension plan (Money Purchase Pension Plan and
Trust) which it adopted in August, 1993.
Employees are eligible to participate in the plan after one full year of service if they work for at least 1,000
hours within the 12-month period. The City is obligated by the plan document to make a contribution equal
to at least six percent (6%) of the Annual Compensation of each Member of the Plan. It is the policy of the
City to fund pension costs in installments equally divided among the employee pay periods. Employees make
no contributions to the plan.
After four continuous years of employment with the City, the amount credited to the contribution account of
an employee shall vest in the employee according to the completed number of employment years preceding the
date of termination. After four years of continuous employment, a member is 40% vested, increasing by 10%
for each year thereafter to a maximum of 100%.
For the year ended September 30, 1995, total payroll was $4,925,940 and the employer's contribution was
$240,006 or 6% of the actual eligible payroll of$4,000,097.
\Dj@:~~.n n\0!~i1I*~/~ ~W1 lQ)~L~~\S
u u U~,bUjJduu ",LAu J U
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
9. Deferred Compensation Plan:
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. The plan. available to all City employees, permits them to defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency.
All amounts of compensation deferred under the plan. all property and rights purchased with those amounts,
and all income attributable to those amounts, property or rights are (until paid or made available to the
employee or other beneficiary) solely the property and rights of the City (without being restricted to the
provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants'
rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market
value of the deferred account for each participant.
The City has no liability for losses under the plan but does have the duty of due care that would be required of
an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the
claims of general creditors in the future.
10. Developer Agreement:
In connection with the City's April, 1990 acquisition of the east water and sewer utility assets from Seminole
Utility Company, the City entered into a ten-year developer agreement with a major local developer. Under
this agreement, the City guarantees the availability of 1,500 equivalent residential water and sewer
connections (ERC's), most of which were provided at no charge for reservations or service availability until
April, 1995. In return, the developer paid an annual fee of $256 per ERC not used by April 30, 1995, until
used or until April 30, 1999, whichever is earlier. The agreement may be extended to April 30, 2004 at the
option of either party.
rD/fO), ~In nr~V~n~n!0 6)\V7 f[)\ fD) !f;:. ~lJ
LrLrill..=:::J~u~VLUU '-'u-\-~LrU 'V l'::!)lJUL,~u--
FOR [}iSCUSSjON PURPOSES ONLY
31
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Year Ended September 30,1995
Segment Information for Enterprise Funds:
The City maintains two enterprise funds, one a water and sewer utility and the other a stormwater utility.
Segment information for the year ended September 30, 1995 was as follows:
11.
Operating Revenues
Operating Expenses
Depreciation and Amortization Expense
Operating Income (Loss)
Net Income (Loss)
Current Capital:
Contributions
Property, Plant and Equipment:
Additions
Deletions
Net Working Capital
Total Assets
Bonds and Other Long-Tenn Liabilities:
Payable from operating revenues
Total Equity
Water and
Sewer -
West utility
$ 5,053,503
3, n2,269
1,130,995
1,281,234
321,190
1,667,794
1,948,994
(3,556,369)
1,516,806
32,062,226
23,099,649
6,505,161
Stonnwater -
East utility
$ 288,419
596,604
241,655
(308,185)
(299,166)
5,869,437
(48,818)
5,963,144
5,889,927
Total
Enterprise
Funds
$ 5,341,922
4,368,873
1,372,650
973,049
22,024
7,537,231
1,948,994
(3,556,369)
1,467,988
38,025,370
23,099,649
12,395,088
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Prior Period Adjustments and Reclassifications:
On October 1, 1994, the City reclassified its Stormwater Utilities Fund from a Special Revenue Fund to an
Enterprise Fund. This reclassification was made to comply with the City's ordinance that established the
fund.
12.
As part of this reclassification, developer-contributed fixed assets utilized by the Stormwater Utilities,
formerly excluded from the City's General Fixed Asset Account Group because of their classification as
infrastructure, were recorded in the Stormwater Utility Enterprise Fund as contributed capital in the amount
of $5,869,437, which represents the assets' estimated value at date of acquisition less accwnulated
depreciation.
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r-' Lru~L..::::JJL(/: uu\Jl.Aj U L:::/ ~ ruU
FOR O~SC'Uf~SION PURPOSES ONLY
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COMBINING, INDIVIDUAL FUND STATEMENTS
AND SCHEDULE
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CITY OF WINTER SPRINGS, FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET IGAAP BASIS' AND ACTUAL
Year Ended September 30, 1995
Variance
Favorable
Budget Actual (Unfavorable)
General Government:
Commission $ 60,085 $ 48,965 $ 11 ,120
City manager 111,054 104,628 6,426
City clerk 246,478 242,593 3,885
Finance 509,565 482,180 27,385
Personnel 47,897 46,285 1,612
General Services 321 ,408 311,195 10,213
Purchasing 76,341 73,338 3,003
Engineering 71 ,321 60,074 11,247
Land development 94,182 48,391 45,791
Land management 47,677 47,513 164
Code enforcement 54,788 39,711 15.077
General government 140,635 96,775 43,860
Capital improvements 45,972 45,972
Total general government 1 ,827 ,403 1,647,620 179,783
Public Safety:
Police 2,165,739 1,856,351 309,388
Fire 1,883,860 1,709,074 174,786
Building 206,762 186,479 20,283
Total public safety 4,256,361 3,751 ,904 504,457
Transportation:
Public works 919,470 895,840 23,630
Total transportation 919,470 895,840 23,630
Culture and Recreation:
Recreation 833,188 744,809 88,379
Total culture and recreation 833,188 744,809 88,379
Total Expenditures $ 7,836,422 $ 7 ,040,173 $ 796,249
See accompanying notes to financial sta'tements. (p)~~~~~~~~~W [Q)~~[FlJ
FOR D~SCUSSION PURPOSES ONL Y
33
CITY OF WINTER SPRINGS, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 1995
Police Special Law Transportation Interim
Education Enforcement Improvement Recreation Service
Assets Fund Trust Fund Fund Fund Fee Fund
Cash and cash equivalents $ 32.443 $ 10,588 $ 612,119 $ 25,020 $ 13,483
Due from other funds 16,314
Interest receivable 1,619
$ 32,443 $ 10,588 $ 630,052 $ 25,020 $ 13,483
Liabilities and Fund Equity
Liabilities:
Accounts payable $ $ $ 122,860 $ $
Due to other funds 195
Deferred revenue 16,314
Total liabilities 139,369
Fund Equity:
Fund balances:
Reserved for encumbrances 137,133
Unreserved 32,443 10,588 353,550 25,020 13,483
Total fund equity 32,443 10,588 490,683 25,020 13,483
$ 32,443 $ 10,588 $ 630,052 $ 25,020 $ 13,483
See accompanying notes to financial statements.
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Public Electric Transportation Police Fire
Service Excise Franchise Impact Impact Impact
Tax Fund Tax Fund Fee Fund Fee Fund Fee Fund Fee Fund Total
$ 2,407 $ $ 139 $ 1,872,265 $ 126,244 $ 263,879 $ 2,958,587
16,314
2,428 4,047
$ 2,407 $ $ 139 $ 1,874,693 $ 126,244 $ 263,879 $ 2,978,948
$ $
$
$
467
$
$
$ 123,327
195
16,314
139,836
467
2,407
2,407
$ 2,407 $
137,133
2,701,979
2,839,112
$ 2,978,948
139
139
1,874,226
1,874,226
$ 1,874,693
126,244
126,244
263,879
263,879
$
139
$ 126,244 $ 263,879
[P~~[Lu[,~Ju~l~~~~W [Q)~!~[FlJ
FOR D~SCUSSION PURPOSES ONLY
"
35
CITY OF WINTER SPRINGS, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND
CHANGES IN FUND BALANCE
Year Ended September 30,1995
Police
Education
Fund
Special Law
Enforcement
Trust Fund
Transpor-
tation
Improve-
ment Fund
Recreation
Fund
Interim
Service
Fee Fund
Revenues:
Taxes
Fees
Intergovernmental revenues
Fines and forfeitures
Interest
Miscellaneous
Total revenues
$
$
$ $
$
21,978
205,502
52
266 30,451
2,200
2,518 235,953
681
630 524
630 22,502
681
Expenditures:
Current:
General government
Public safety
Transportation
Capital outlay
Total expenditures
11,202
2,200
2,200
183,973
267,203
451,176
4,985
16,187
Excess (Deficiency) of Revenues Over
(Under) Expenditures
(15,506)
318
(215,223)
630
22,502
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
(29,500)
(29,500)
Excess of Revenues and Other
Financing Sources Over (Under)
Expenditures and Other Uses
(215,223)
630
(6,998)
(15,506)
318
Fund Balances, October 1, 1994
47,949
10,270
705,906
24,390
20,481
Fund Balances, September 3D, 1995
$ 32.443 $
10,588 $ 490,683 $ 25,020 $ 13,483
See accompanying notes to financial statements.
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ro.R D~SCU~bS~ON PURPOSES ONLY
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I Transpor-
Public Electric tation Police Fire
I Service Excise Franchise Impact Impact Impact
Tax Fund Tax Fund Fee Fund Fee Fund Fee Fund Fee Fund Totals
I $ 1,307,065 $ 845,052 $ $ $ $ $ 2,152,117
278,084 27,334 55,917 383,313
205,502
I 52
4,334 2,960 79,851 2,834 6,004 128,535
2,200
I 1 ,311 ,399 845,052 2,960 357,935 30,168 61,921 2,871,719
I 6,198 6,198
13,402
290 184,263
I 78,792 350,980
6,198 79,082 554,843
I 1,311,399 845,052 (3,238) 278,853 30,168 61,921 2,316,876
845,052 845,052
I (1,308,992) (845,052) (842,011) (3,025,555)
(1,308,992) (845,052) 3,041 (2,180,503)
I 2,407 ( 197) 278,853 30,168 61,921 136,373
I 336 1,595,373 96,076 201,958 2,702,739
$ 2,407 $ $ 139 $ 1,874,226 $ 126,244 $ 263.879 $ 2,839,112
I [Q)~~~lf
I lP~~!LJU~U~~~W
FOR DISCUSSION PURPOSES ONL Y
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CITY OF WINTER SPRINGS, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND
BALANCES - BUDGET IGAAP BASIS) AND ACTUAL
Year Ended September 30, 1995
Police Education Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes
Fees
Intergovernmental revenues
Fines and forfeitures
Interest
Miscellaneous
Total revenues
$
$
$
681
681
681
681
Expenditures:
Current:
General government
Public safety
Transportation
Capital outlay
Total expenditures
32,443
11 ,202
4,985
16,187
43,645
4,985
48,630
32,443
Excess (Deficiency) of Revenues Over (Under)
Expenditures
(47,949)
(15,506)
32,443
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
(15,506)
32,443
(47,949)
Fund Balances, October 1, 1994
47,949
47,949
32,443 $
32,443
Fund Balances, September 30, 1995
$
$
See accompanying notes to financial statements.
~G~E[LU~uu~l~~~W [Q)~~[Fu
FOR DISCUSSION PURPOSES ONLY
38
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CITY OF WINTER SPRINGS, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND
BALANCES - BUDGET fGAAP BASIS) AND ACTUAL - CONTINUED
Year Ended September 3D, 1995
Recreation Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes $ $ $
Fees
Intergovernmental revenues
Fines and forfeitures
Interest 630 630
Miscellaneous
Total revenues 630 630
Expenditures:
Current:
General government
Public safety
Transportation
Capital outlay 25,020 25,020
Total expenditures 25,020 25,020
Excess (Deficiency) of Revenues Over (Under)
Expenditures (24,390) 630 25,020
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses (24,390) 630 25,020
Fund Balances, October 1, 1994 24,390 24,390
Fund Balances, September 30, 1995 $ $ 25,020 $ 25,020
See accompanying notes to financial statements. jC)\gi,i~~ n~\~lm~~W [Q)~~[Fu
u t.: '-1 ,.::::Jl.::::l U U L;
FOR DiSCUSSION PURPOSES ONL Y
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CITY OF WINTER SPRINGS, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND
BALANCES - BUDGET IGAAP BASIS) AND ACTUAL - CONTINUED
Year Ended September 3D, 1995
Excise Tax Fund
Budget
Actual
Variance
Favorable
(Unfavorable)
Revenues:
Taxes
Fees
Intergovernmental revenues
Fines and forfeitures
Interest
Miscellaneous
Total revenues
$ 845,052 $ 845,052 $
845,052 845,052
Expenditures:
Current:
General government
Public safety
Transportation
Capital outlay
Total expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
845,052
845,052
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
(845,052)
(845,052)
(845,052)
(845,052)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
Fund Balances, October 1, 1994
Fund Balances, September 30, 1995
$
$
$
See accompanying notes to financial statements.
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LJ LI'lll.S. :=J~JJ\JuJu\J~LrU If L!:-VLriJl):;\lJ U
FOR Ci~~CUSSBON PURPOSES ONLY
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I Electric Franchise Fee Fund Transportation Impact Fee Fund
Variance Variance
I Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
I $ $ $ $ $ $
278,084 278,084
I 2,960 2,960 79,851 79,851
I 2,960 2,960 357,935 357,935
I 6,198 6,198
290 290
I 78,800 78,792 8
6,198 6,198 79,090 79,082 8
I (3,238) (3,238) 278,845 278,853 8
I 845,052 845,052
(842,150) (842,011) 139
2,902 3,041 139
I (336) (197) 139 278,845 278,853 8
I 336 336 1 ,595,373 1,595,373
$ $ 139 $ 139 $ 1,874,218 $ 1 ,874,226 $ 8
I
I ~)U~.~ r;~n !l~,,~nlm~~W ~~~[Plf
... U L::::J c.=:J:..J L; LJ _ u
FOR DISCUSSION PURPOSES ONLY
I
I
Continued
I 43
CITY OF WINTER SPRINGS, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND
BALANCES - BUDGET IGAAP BASIS' AND ACTUAL - CONTINUED
Year Ended September 30, 1995
Police Impact Fee Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes
Fees
Intergovernmental revenues
Fines and forfeitures
Interest
Miscellaneous
Total revenues
$
$
$
27,335
27,334
2,835
30,170
2,834
30,168
Expenditures:
Current:
General government
Public safety
Transportation
Capital outlay
Total expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
30,170
30,168
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
30,168
96,076
30,170
96,076
Fund Balances, October 1, 1994
Fund Balances, September 30, 1995
$ 126,246 $ 126,244 $
See accompanying notes to financial statements.
(1)
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(1)
(2)
(2)
(2)
(2)
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~_r/lFULSLhUL~{JLU\~Lr~l~ 11 [Q)~~[FlJ I
FOR (~!SC1JSSiON PURPOSES ONLY
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44
CITY OF WINTER SPRINGS, FLORIDA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
September 30, 1995
1989 Debt 1993 Debt
Assets Service Service Total
Cash and Cash Equivalents $ 782,044 $ 1,211,610 $ 1,993,654
$ 782,044 $ 1,211,610 $ 1,993,654
Fund Equity
Fund Balance Reserved for Debt Service $ 782,044 $ 1,211,610 $ 1,993,654
$ 782,044 $ 1,211,610 $ 1,993,654
See accompanying notes to financial statements.
~\}f\ fk~~ IT) 'rI ,~r?U
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FOR D~SCUSS~ON PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
Year Ended September 30, 1995
47
CITY OF WINTER SPRINGS, FLORIDA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET (GAAP BASIS' AND ACTUAL
Year Ended September 30, 1995
Budget
Revenues:
Interest
$
34,125 $
34,125
Total revenues
Expenditures:
Principal retirement
Interest and fiscal charges
Total expenditures
180,000
248,975
428,975
Excess (Deficiency) of Revenues Over (Under)
Expenditures
(394,850)
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
397,385
397 ,385
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
2,535
785,719
Fund Balances, October 1, 1994
1989 Debt Service
Actual
Variance
Favorable
(Unfavorable)
21 ,621 $
21 ,621
(12,504)
(12,504)
180,000
242,675
422,675
6,300
6,300
(401 ,054)
(6,204)
397,379
397,379
(3,675)
(6,210)
785,719
$ 788,254 $ 782,044 $
(6,210)
Fund Balances, September 30, 1995
See accompanying notes to financial statements.
i-f))i~~; ,-~~~: ii:1pnr~.~ 0\ ::J)\V7 f\\D jp) /'t}. rsCjf
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FOR D~SCUSS!ON PURPOSES ONLY
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(6)
(6)
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1993 Debt Service Totals
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ 63,514 $ 83,444 $ 19,930 $ 97,639 $ 105,065 $ 7,426
63,514 83,444 19,930 97,639 . 105,065 7,426
55,000 55,000 235,000 235,000
478,913 478,088 825 727 ,888 720,763 7,125
533,913 533,088 825 962,888 955,763 7,125
(470,399) (449,644) 20,755 (865,249) (850,698) 14,551
484,343 484,324 (19) 881,728 881,703 (25)
484,343 484,324 (19) 881,728 881,703 (25)
13,944 34,680 20,736 16,479 31,005 14,526
1,176,930 1 ,176,930 1,962,649 1 ,962,649
$ 1,190,874 $ 1,211,610 $ 20,736 $ 1,979,128 $ 1,993,654 $ 14,526
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FOR D~SCUSSION PURPOSES ONL Y
49
CITY OF WINTER SPRINGS, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
September 30,1995
1989 Capital 1993 Capital
Assets Projects Projects Total
Cash and Cash Equivalents $ 34,850 $ $ 34,850
Investments 1,921,168 1,921,168
$ 34,850 $ 1 ,921,168 $ 1,956,018
Liabilities and Fund Equity
Liabilities:
Accounts payable $ 1,774 $ 25,985 $ 27,759
Total liabilities 1,774 25,985 27,759
Fund Equity:
Fund balance reserved for encumbrances 150,596 150,596
Fund balance reserved for capital projects 33,076 1 ,744,587 1,777,663
Total fund equity 33,076 1,895,183 1,928,259
$ 34,850 $ 1,921,168 $ 1,956,018
See accompanying notes to financial statements.
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CITY OF WINTER SPRINGS, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
Year Ended September 30,1995
Revenues:
Interest
Miscellaneous
Total revenues
1989 Capital 1993 Capital
Projects Projects Totals
$ 3,128 $ 110,035 $ 113,163
5,011 5,011
8,139 110,035 118,174
90,834 350,051 440,885
90,834 350,051 440,885
(82,695) (240,016) (322,711)
Expenditures:
Capital outlay
Total expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
(82,695)
115,771
(240,016)
2,135,199
(322,711)
2,250,970
Fund Balances, October 1, 1994
Fund Balances, September 30, 1995
$
33,076 $ 1,895,183 $ 1,928,259
See accompanying notes to financial statements.
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FO'r~ DgSCUSSiON PURPOSES ONLY
51
CITY OF WINTER SPRINGS, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET fGAAP BASIS} AND ACTUAL
Year Ended September 30,1995
1989 Capital Projects
Variance
Favorable
Budget Actual (Unfavorable)
Revenues: '
Interest
Miscellaneous
Total revenues
$ 3,128 $ 3,128 $
5,011 5,011
8,139 8,139
123,910 90,834 33,076
123,910 90,834 33,076
(115,771) (82,695) 33,076
Expenditures:
Capital outlay
Total expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
(82,695)
33,076
(115,771)
115.771
115,771
33,076 $
Fund Balances, October 1, 1994
33,076
Fund Balances, September 30, 1995
$
$
See accompanying notes to financial statements.
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1993 Capital Projects Totals
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable ) Budget Actual (Unfavorable)
$ 110,040 $ 110,035 $ (5) $ 113,168 $ 113,163 $ (5)
5,011 5,011
110,040 110,035 (5) 118,179 118,174 (5)
2,245,239 350,051 1 ,895,188 2,369,149 440,885 1,928,264
2,245,239 350,051 1,895,188 2,369,149 440,885 1,928,264
(2,135,199) (240,016) 1,895,183 (2,250,970) (322,711) 1 ,928,259
(2,135,199)
2,135,199
(240,016)
2,135,199
$ 1,895,183
1,895,183
(2,250,970)
2,250,970
(322,711)
2,250,970
$ 1,928,259
1,928,259
$
$ 1,895,183
$
$ 1 ,928,259
LD~[glLU~u~~~W [Q)~~~~
FOR D~SCUSSiON PURPOSES ONLY
53
CITY OF WINTER SPRINGS, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
September 30, 1995
Water
& Sewer Stonnwater
Assets Utilities Utilities Total
Current Assets:
Cash and cash equivalents $ 1,147,258 $ $ 1,147.258
Accounts receivable - net 727,098 727,098
Due from other funds 17,856 24,399 42,255
Inventories 149 149
Total current assets 1,892,361 24,399 1,916,760
Restricted Assets:
Cash and cash equivalents 1,759,526 310,962 2,070,488
Investments 2,566,070 2,566,070
Total restricted assets 4,325,596 310,962 4,636,558
Property, Plant and Equipment 31,544,650 9,428,815 40,973,465
Less: Accumulated Depreciation (6,186,758) (3,801,032) (9,987,790)
Property, plant and equipment, net 25,357,892 5,627.783 30,985,675
Unamortized Bond Costs 486,377 486,377
r-=:1 ~--
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FOR D~SCUSS~ON PURF'OSI~S ONLY
Total Assets
$ 32,062,226 $ 5,963,144 $ 38,025,370
54
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Water
& Sewer Stonnwater
Liabilities and Fund Equity Utilities Utilities Total
Current Liabilities (Payable from Current Assets):
Accounts payable $ 184,495 $ 44,670 $ 229,165
Accrued liabilities 23,792 23,792
Due to other funds 132,376 28,547 160,923
Accrued compensated absences 34,892 34,892
Total current liabilities (payable from current
assets) 375,555 73,217 448,772
Current Liabilities (Payable from Restricted Assets):
Accrued interest 687,989 687,989
Current portion of revenue bonds payable 415,000 415,000
Obligation under futures agreement - current portion 563,006 563,006
Customer deposits 415,866 415,866
Total current liabilities (payable from
restricted assets) 2,081,861 2,081 ,861
Long-Term Liabilities:
Obligation under futures agreement, less current portion 1,200,000 1,200,000
Revenue bonds payable, less current portion 21,899,649 21,899,649
Total long-term liabilities 23,099,649 23,099,649
Total liabilities 25,557 ,065 73,217 25,630,282
Fund Equity:
Contributed capital 5,514,332 5,869,437 11,383,769
Retained earnings:
Reserved for renewal and replacement 998,941 998,941
Reserved for capital improvements 327,706 327,706
Unreserved - (deficit) (335,818) 20,490 (315,328)
Total retained earnings 990,829 20,490 1,011,319
Total fund equity 6,505,161 5,889,927 12,395,088
Total Liabilities and Fund Equity $ 32,062,226 $ 5,963,144 $ 38,025,370
[F)~~rs~[0JU~~~W lQ)~~[Fu
FOR D~SCUSS~ON PURPOSES ONLY
55
CITY OF WINTER SPRINGS, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS
Year Ended September 30, 1995
Water
& Sewer Stormwater
Utilities Utilities Total
Operating Revenues:
User charges $ 5,053,503 $ 288,419 $ 5,341,922
Operating Expenses:
Salaries and benefits 1,036,908 1,036,908
Materials and supplies 357,559 357,559
Depreciation and amortization 1,130,995 241 ,655 1,372,650
Other operating expenses 1 ,246,807 354,949 1,601,756
Total operating expenses ' 3, n2,269 596,604 4,368,873
Operating Income (Loss) 1 ,281,234 (308,185) 973,049
Non-Operating Revenues (Expenses):
Interest income 313,001 9,019 322,020
Interest expense (1,373,597) (1,373,597)
Gain on disposal of equipment 8,516 8,516
Miscellaneous 92,036 92,036
Total non-operating revenues (expenses) (960,044) 9,019 (951 ,025)
Net Income (Loss) 321,190 (299,166) 22,024
Retained Earnings, October 1, 1994 669,639 319,656 989,295
Retained Earnings, September 30, 1995 $ 990,829 $ 20,490 $ 1,011,319
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I CITY OF WINTER SPRINGS, FLORIDA
I ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
I Year Ended September 30,1995
I -~':'., ~-":' rc::'n nn r:lnr\n .& fD):'ij lQ)~ ffi\~lJ Water
' Ii' ,.'! l-, ". I' I. !, . 0
, :'/--'1): r-' I I"" ~.' 'I Ii I'J t:. \ I ru ' & Sewer Stonnwater
,. l~--IL.:::::;! -:j~UlJuL' iF"_\L
r!""~ F~~~,,",4"-, ;".:,,~<~~.r, P' u~PS(~ES Q~L y Utilities Utilities Total
I ~~fJ~s~..:(ti;~~e)i~~iJb'~a.m~as qUlval .
Cash Flows from Operating Activities:
I Operating income (Joss) $ 1,281,234 $ (308,185) $ 973,049
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
I Depreciation and amortization 1.130,995 241.655 1,372,650
Provision for uncollectible accounts 16,601 16,601
Changes in assets and liabilities:
Increase in accounts receivable (86.582) (86,582)
I Increase in inventory (19) (19)
(Increase) decrease in due from other funds (17,855) 8,842 (9,013)
Increase (decrease) in accounts payable (28,891) 34,741 5,850
Decrease in accrued liabilities (72.181) (72,181)
I Increase (decrease) in due to other funds (678) 28,545 27,867
Increase in customer deposits 36,458 36,458
Decrease in accrued compensated absences (9,162) (9,162)
I Net cash provided by operating activities 2,249,920 5,598 2,255,518
Cash Flows from Capital and Related Financing Activities:
I Acquisition and construction of capital assets ,(1,045.792) (1,045.792)
Principal paid on revenue bonds (95,000) (95,000)
Interest paid on revenue bonds (1 ,373,597) (1,373,597)
Net cash provided by (used in) capital
I and related financing activities (2,514,389) (2,514,389)
Cash Flows from Investing Activities:
Sale of investments 3,694,413 3,694,413
I Purchase of investments (5,129.486) (5,129,486)
Earnings on cash, cash equivalents and investments 313,001 9,019 322,020
Net cash provided by (used in)
I investing activities (1,122,072) 9,019 (1 ,113,053)
Net Increase (Decrease) in Cash and Cash Equivalents (1,386,541) 14,617 (1.371,924)
I Cash and Cash Equivalents. October 1, 1994 4,293,325 296,345 4,589,670
Cash and Cash Equivalents, September 30,1995 $ 2,906,784 $ 310,962 $ 3,217,746
I
Noncash Investing, Capital. and Financing Activities:
I During the year ended September 30. 1995, the City recorded as contributed capital utility system equipment
donated by developers totalling $1.667.794 for the Water and Sewer Utilities and $5,869.437 for the
Stormwater Utility.
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I 57
CITY OF WINTER SPRINGS,FLORIDA
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
September 30, 1995
Pension
Trust Fund Agency Fund
Defined Deferred
Assets Contribution Compensation Total
Cash and Cash Equivalents $ 16,051 $ 1,203,172 $ 1,219,223
Investments 1~579,535 1,579,535
Accrued Interest Receivable 99 99
Due from other Funds 10,272 10,272
$ 1,605,957 $ 1,203,172 $ 2,809,129
Liabilities and Fund Equity
Liabilities:
Deferred compensation $ $ 1,203,172 $ 1 ,203,172
Total liabilities 1,203,172 1 ,203,172
Fund Equity:
Reserved for employee retirement 1 ,605,957 1,605,957
Total fund equity 1,605,957 1,605,957
$ 1,605,957 $ 1,203,172 $ 2,809,129
See accompanying notes to financial statements.
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FOR D~SCUSSaON PURPOSES ONLY
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CITY OF WINTER SPRINGS, FLORIDA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year Ended September 30, 1995
Balance
October 1,
1994
Balance
September 30,
Additions Deductions 1995
DEFERRED COMPENSATION:
Assets
Cash and Cash Equivalents
$ 1,035.642 $ 291,076 $ 123,546 $ 1,203,172
Liabilities
Deferred Compensation
$ 1,035,642 $ 291,076 $ 123,546 $ 1,203,172
See accompanying notes to financial statements.
~~~~u~u~~'[PiW [Q)~ffi\~lJ
FOR rH~CUSS~ON PURPOSES ONLY
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COMPLIANCE REPORTS
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REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS
The Honorable Mayor,
Members of the City Commission,
and City Manager
City of Winter Springs, Florida
We have audited the general-purpose financial statements and the combining and individual fund financial
statements and account groups of the City of Winter Springs, Florida as of and for the year ended
September 30, 1995, and have issued our report thereon dated March 13, 1996.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Winter Springs, Florida
is the responsibility of the City of Winter Springs, Florida management. As part of obtaining reasonable
assurance about whether the financial statements are free of material misstatement, we performed tests of
the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, the
objective of our audit of the general-purpose financial statements and the combining and individual fund
financial statements Was not to provide an opinion on overall compliance with such provisions.
Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein
under Government Auditing Standards. However, we noted certain immaterial instances of noncompliance
that we have reported to the management of the City of Winter Springs in a separate letter dated March 13,
1996.
This report is intended for the information of the management of the City of Winter Springs, Florida, the
City Commission, and the Auditor General of the State of Florida. However, this report is a matter of
public record and its distribution is not limited.
~~~~U~~~~~W [D)~~~u
FOR DISCUSSION PURPOSES ONLY
Orlando, Florida
March 13, 1996
61
REPORT ON INTERNAL CONTROL STRUCTURE
The Honorable Mayor,
Members of the City Commission,
and City Manager
City of Winter Springs, Florida
[0l0~[g~D\KIAlG~~~W lQJ~~lPlf
FOR DISCUSSiON PURPOSES ONLY
We have audited the general-purpose financial statements and the combining and individual fund and
account group financial statements of the City of Winter Springs, Florida, as of and for the year ended
September 30, 1995, and have issued our report thereon dated March 13, 1996.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement.
The management of the City of Winter Springs, Florida, is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and
that transactions are executed in accordance with management's authorization and recorded properly to
permit the preparation of financial statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless
occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to
the risk that procedures may become inadequate because of changes in conditions or that the effectiveness
of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general-purpose financial statements and the combining and
individual fund and account group financial statements of the City of Winter Springs, Florida, for the year
ended September 30, 1995, we obtained an understanding of its internal control structure. With respect to
the internal control structure, we obtained an understanding of the design of relevant policies and
procedures and whether they have been placed in operation, and we assessed control risk in order to
detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and
not to provide an opinion on the internal control structure. Accordingly, we do not express such an
. . .
opIDlon.
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Our consideration of the internal control structure would not necessarily disclose all matters in the internal
control structure that might be material weaknesses under standards established by the American Institute
of Certified Public Accountants. A material weakness is a condition in which the design or operation of
one or more of the specific internal control structure elements does not reduce to a relatively low level the
risk that errors and irregularities in amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by employees in the nonna} course of
performing their assigned functions, We noted no matters involving the internal control structure and its
operation that we consider to be material weaknesses as defined above.
However, we noted certain matters involving the internal control structure and its operation that we have
reported to the management of the City of Winter Springs, Florida, in a separate letter dated March 13,
1996.
This report is intended for the infonnation of the management of the City of Win~r Springs, Florida, the
City Commission, and the Auditor General of the State of Florida. However, this report is a matter of
public record and its distribution is not limited.
';-'-: ,-:-~~'i T-\ 11m-'- n 1\\ r2l1 '.::), '\:\17 [Q)U" r=--~o /A'\ reU~'C::~-
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FOR D~SCUSSION PURPOSES ONLY
Orlando, Florida
March 13, 1996
63
MANAGEMENT COMMENTS
The Honorable Mayor,
Members of the City Commission,
and City Manager
City of Winter Springs, Florida
We have audited the general-purpose financial statements and the combining and individual fund and
account group financial statements of the City of Winter Springs, Florida, as of and for the year ended
September 30, 1995, and have issued our report thereon dated March 13, 1996.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement.
In addition, we are submitting for your consideration the accompanying recommendations designed to help
the City improve the internal control structure and achieve operational efficiencies. Also, we have tested
your operations for compliance with applicable laws, regulations and contracts and have included
additional comments required to be included by reason of the Rules of the Auditor General of the State of
Florida.
We have reviewed the City's financial report, as of September 30, 1995, required to be filed with the
Department of Banking and Finance pursuant to Section 218.32 of the Florida Statutes. This report was
compared with the City's financial statements for the same period. No exceptions were noted during our
review.
We detennined that the City of Winter Springs, Florida, was not in a state of financial emergency as a
consequence of conditions described in Section 218 .503( 1), Florida Statutes, under the Rules of the Auditor
General of the State of Florida.
This report is intended for the infonnation of the management of the City of Winter Springs, Florida, the
City Commission, and the Auditor General of the State of Florida. However, this report is a matter of
public record and its distribution is not limited.
i}2)~~lL~~mfDffi:I~W [Q)~ffi:I~lJ
FO~ /l"':"~~u ili1'>>~r,_l: ~ -U~r'.lO
~ ~ ;"""~""""~",,'U~~'i\,.~g'i ","' nr SES ONLY
Orlando, Florida
March 13, 1996
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Status of Prior Year Comments
We noted that the previous management letter comments have been resolved to our satisfaction. with the
exception of the following:
1. We noted that the City's computer system does not properly record expenditures relating to prior
year encumbrances. .As a result, several of the City's expenditures and fixed asset accounts were
understated.
We recommend that the City gain a full understanding of the entries made by the computer
system when invoicing a prior year encumbrance. The system should be modified to properly
record the entries or the City should maintain sufficient records to adjust the entries on a
monthly basis.
Manarement's Re$,ponse:
This matter has been resolved through computer software enhancements.
2. .As in prior years, we noted certain major funds whose accounts did not balance. This
necessitated our performing extensive research into the cause of the incorrect fund balances, and
resulted in numerous correcting journal entries.
We recommend that the City review out-of-balance funds and prepare the adjustments necessary
to bring the funds into balance.
Manarement's ResDonse:
New computer software enhancements this year will resolve this matter.
Current Year Comments
1. We noted that the person acting as cashier for the City also issues licenses and permits such as
occupational licenses. lbis lack of segregation of duties could allow errors or irregularities to
go undetected.
We recommend that the person responsible for issuing such licenses and permits be independent
of the cashier function.
Manafement's ResDonse:
This recommendation has been partially implemented and will be completed
during FY 97 as a result of relocation and reorgani7~tion of finance functions
included in the FY 97 Budget.
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FOR DiSCU3S~ION PURPOSES ONLY
65
2. We noted inadequate cash control and cut-off procedures in the receipt of occupational license
fees. We found numerous payments sitting in a file folder, not deposited or even restrictively
endorsed. Due to the inability of the City to ascertain the fiscal year in which the monies were
actually received, none of the receipts could be counted as revenues in the fiscal year ended
Seprember30,1995.
We recommend that all monies received be immediately logged in, restrictively endorsed,
deposited in the bank in a timely manner, and the corresponding revenue be recorded in the
proper period. fR)f9) ~~ ~r0t~u~ f&i ~W1 [f\\fD2 /i;, blF
LJ LfIJt.=:::JlbUu'..JL, u \J~U'u U L0Lfllu-uU U
Manaeement's ResDonse: FOR DISCUSSION PURPOSES ONLY
During FY 97, additional o~ni7.ational changes will be implemented to further
enhance the segregation of duties as noted in the response to Current Year
Comment No. 1 above.
3. The City's Transportation Improvement Fund was overexpended for fiscal year ended
Seprember 30, 1995. An official budget amendment transferring money sufficient to cover these
expenditures was not approved by the City Commission. Thus, these expenditures constiture a
legal violation.
We recommend expenditures be more closely monitored to prevent such overexpenditures in the
future.
Manaeement's ResDonse:
Management is preparing in the FY 97 Budget authorization to employ a budget
analyst that provides the manpower and expertise needed to resolve budgets
investment problems noted in this comment and to implement a rigorous pre
audit system.
Management directives have been executed to help resolve this problem until
such time that a full and complete budget maintenance and pre audit system can
be operational.
4. We noted that the final adopted budget for the fiscal year ended September 30, 1995 was not
stamped into admission by the City Clerk, attached to appropriate Commission minutes, and
filed as part of the formal budget records of the City. Since no legally adopted budget was made
part of the public record, it makes monitoring of the adherence to said budget more difficult and
increases the possibility that unapproved changes could possibly be made without detection.
We recommend that the final budget and all subsequent amendments, as adopted by the City
Commission, be properly entered into the public records of the City.
Manaeement's ResDonse:
This problem has been resolved through management directives to the Clerk.
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5. The City is rapidly expanding its use of information technology. This is evidenced by the
installation of a new financial accounting system, plans to network all City departments and the
hiring of a "computer support specialist". Such growth brings about the need for additional
controls relating to the information technology environment. As a start, we have the following
recommendations:
Document an information technology strategic plan. Such plans outline where the City
wants to be within the next three to five years with regards to information technology
utilization. Without a strategic plan, the City risks spending information technology
dollars today without proper regard to how these investments will serve the City, if at
all, in the future. We recommend that an information technology strategic plan be
developed. Such a plan should be created with appropriate input from all affected City
departments.
Develop documented computer security and usage policies and procedures. We noted
that there are no documented computer security and usage policies and procedures.
Such documents are important in that they help to standardize and ensure that
employees are aware of management's intended policies and procedures. Such policies
should include, at a minimum: password protocols; workstation usage rules; computer
virus procedures; software licenses; responsibilities for enforcement and disciplinary
actions taken for infractions. We recommend that written computer security policies
and procedures be developed and that all employees be required to sign a copy of this
document. Going forward, all new employees should be required to read and sign these
policies as part of the orientation process.
Develop a computer system access form. There is currently no documented method for
adding new users to the system(s). We recommend that a new user request fonn be
developed to provide documentation of this process. This fonn should contain
appropriate approvals and a detailed description of both system and application level
access. These fonns can be used to review access levels on the system and compare
them to the authorizing source documentation on a periodic basis.
Formalize computer help desk procedures. As the use of PC's and software grows, so
will the number of "help desk" calls. Such problems should be logged with the nature of
the problem (or question), the person/department experiencing the problem and the
resolution. This information can then be used to help detennine needed computer
training and will also serve as a valuable reference database as problem resolutions are
documented. We recommend that such a system, preferably automated, be
implemented.
Develop procedures to monitor the use of unlicensed software. We noted that there
currently is no active software license policy in effect. Penalties for violations of
software copyright laws are quite severe and can best be avoided by having an active
compliance program in place. We recommend that the responsibility for maintaining
software licenses be designated and listings of which computers have which software be
maintained. Microcomputers can then be audited against these listings to ensure that no
unauthorized applications are installed. All such reviews should be documented and
retained as evidence that the procedures are operating as intended.
[0~[~ILu~~~~~~W [Q)~~fl
FOR D~SCUSSION PURPOSES ONL'
67
Develop standards for microcomputer based software and hardware. Without such
standards, the risk of lost bulk purchase volume discounts and the chance of
deparbnents using unlicensed software increases. Hardware/software support costs also
increase due to the effort required to support multiple platforms. We recommend that
microcomputer software and hardware standards be developed and adhered to.
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Manarement's Resoonse:
All of these recommendations are currently addressed through the City's
new Infonnation Systems Manager provided for in the FY 96 Budget, FY
97 Budget Proposals in infonnation systems improvements and a new
records management program in the City Clerk's office.
6.
We noted that passwords on the new financial accounting system are required to be at least two
characters in length and are never required to be changed. Two characters is too short to allow
for a secure, hard-to-guess password. Periodic forced password changes serves as an important
control should a user's password ever be compromised. In addition, we noted that the Finance
Director mew many employees' passwords. We recommend that passwords be required to be at
least six characters in length, changed at least every 90 days, and that passwords should not be
shared with others.
Management's ResDonse:
Management directives have been issued to implement this recommendation
immediately.
7.
As the year 2000 approaches, every organization utilizing computers is potentially sitting on a
time bomb. The year 2000 will be the first century change ever endured by an automated
society. The vast majority of computer applications in use throughout the world today have date
processing logic based on a two-digit year. The two-digit year representation and associated
logic may produce incorrect results or fail due to invalid data. Errors will occur in abundance
when the two-digit year becomes "00".
Systems projects can require as much as two to four years to complete, from the planning phase
to the actual implementation. The year 2000 is an absolute deadline which requires businesses
to address the problem, rather than ignore it or defer it until a later date. Initial indications are
that the problem is one of significant order of magnitude and needs to be addressed now in order
to implement and test a timely and effective solution.
We therefore recommend that the City begin to asses~ the impact of the year 2000 on its systems
in order to meet this de.aiUine.
Management's ResDonse:
;::;-'-,:-:)~ i':?:: :::-\(l;F\:l (AI, j[))'fj RD '-lrDU) ~\ ~1r
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FOR DsSCUSSION PURPOSES ONLY
Management directives have been issued to our software supplier to resolve this
problem as recommended.
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8. We noted that the new utility system implementation is severely behind schedule. We further
noted that no workplans, GANNT charts, or time-lines are available to serve as a guide to the
implementation or to report on the status of the project. We recommend that such
documentation be developed so that a final implementation date can be developed and that
management will have a tool with which to monitor the project.
Manaf:ement's ResDonse:
A Capital Projects Manager has been included in the FY 97 Budget to
implement these recommendations.
9, We noted that a business continuity plan for the computer system and for the general operations
of the City as a whole has not been developed. Such plans are important in that they provide
guidance for continuity of operations in the event of a disaster. We recommend that a business
continuity plan be developed. Key elements of the plan should include:
· Business Impact Analysis: Identify and detennine the types and levels of impact (loss)
resulting from the vulnerability of computer assets or operational functions. Prioritize
the applications and supporting hardware according to their criticality.
Alternate Strategy Analysis: Select the appropriate alternative processing strategy for
use in the event of a disruption to the business operations. This includes off-site
processing location arrangements as well as roles and responsibilities for recovering the
applications, processing schedules and communication to users of alternate procedures.
Furthermore; once a plan has been developed, it should be tested to identify any unforeseennproblems and help to ensure that the plan will in fact work when needed.
Mana.eement's ResDonse:
Management will begin working on these recommendations in FY 97. As
discussed, this is a mid-range undertaking that will require two to three years to
complete.
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