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HomeMy WebLinkAbout2009 04 27 Awards and Presentations 300 Comprehensive Annual Financial Report (CAFR)COMMISSION AGENDA AWARDS & PRESENTATIONS X INFORMATIONAL ITEM 3 00 PUBLIC HEARING REGULAR Apri127, 2009 MGI~\~ /DEPT ~~~K ~L Speci2l Meeting Authorization REQUEST: The City Manager Is Requesting City Commission Acceptance Of The Comprehensive Annual Financial Report (CAFR), As Presented, For The Fiscal Year Ended September 30, 2008. PURPOSE: The presentation by the City Auditors of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2008. CONSIDERATIONS: The CAFR is prepared to give the City Commission and the citizens a greater understanding of the City's financial standing than can be obtained through the financial statements. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/08 including the audited financial statements and the audit opinion. COMMISSION ACTION: City of Winter Springs Comprehensive Annual Financial Report September 30, 2008 City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2008 Prepared by: Finance Department This page intentionally left blank. INTRODUCTORY SECTION This section contains the following subsections: ^ Table of Contents ^ Letter of Transmittal ^ GFOA Certificate of Achievement ^ List of Principal Officials ^ Organizational Chart This page intentionally left blank. CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2008 Page Introductory Section: Table of Contents i-iii Letter of Transmittal iv-vii GFOA Certificate of Achievement viii List of Principal Officials ix Organizational Chart x II. Financial Section: Independent Auditor's Report 1-2 Management's Discussion and Analysis 3-18 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets 19 Statement of Activities 20 Fund Financial Statements Balance Sheet -Governmental Funds 21-22 Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds 23-24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: General Fund 2g-27 Public & Communications Service Tax Special Revenue Fund 2g Road Improvements Special Revenue Fund 2g Statement of Net Assets -Proprietary Funds 30-31 Statement of Revenues, Expenses and Changes in Fund Net Assets -Proprietary Funds 32 Statement of Cash Flows -Proprietary Funds 33-34 Statement of Fiduciary Net Assets -Fiduciary Funds 35 Statement of Changes in Fiduciary Net Assets -Fiduciary Funds 36 CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2008 Page II. Financial Section -Continued: Notes to Financial Statements 37-74 Required Supplementary Information 75 Combining and Individual Fund Statements and Schedules: Major Governmental Funds: Schedule of Revenues and Expenditures and Changes in Fund Balance -Budget and Actual: TLBD Debt Service Fund 76 Nonmajor Governmental Funds: Combining Balance Sheet -Nonmajor Governmental Funds 77-84 Combining Statement of Revenues, Expenditures and Changes In Fund Balances -Nonmajor Governmental Funds 85-93 Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: Special Revenue Funds 94-115 Debt Service Funds 116-121 Capital Projects Funds 122-130 Capital Assets Used in the Operation of Governmental Funds: Schedule by Function and Activity 131 III. Statistical Section: Financial Trends Net Assets by Component 132 Changes in Net Assets 133-134 Governmental Activities Tax Revenues by Source 135 Fund Balances of Governmental Funds 136 Changes in Fund Balances of Governmental Funds 137 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 138 Property Tax Rates, Direct and Overlapping Governments 139 Special Assessment Billings and Collections 140 Principal Property Taxpayers 141 Property Tax Levies and Collections 142 CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2008 Page III. Statistical Section -Continued: Debt Capacity Legal Debt Margin 143 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 144 Ratio of Outstanding Debt by Type 145 Direct and Overlapping Governmental Activities Debt 146 Pledged-Revenue Coverage 147 Demographic and Economic Information Demographic and Economic Statistics 148 Principal Employers 149 Operating Information Budgeted Full-time Equivalent City Government Employees by Function 150 Operating Indicators by Function 151 Capital Asset Statistics by Function 152 IV. Other Reports: Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 153-154 Management Letter 155-156 Management Response 157 Communication with Those Charged with Governance 158-159 Single Audit Letter 160 Affidavit of Impact Fee Compliance 161 This page intentionally left blank. ~04 ~./ til u CITY OF WINTER SPRINGS, FLORIDA _ 1~ 1126 EAST STATE ROAD 434 FLORDDP' WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 April 16, 2009 To the Honorable Mayor, City Commission and Citizens of the City of Winter Springs, Florida: State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and that they be audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants. Pursuant to that requirement, it is with great pleasure that we present to you the City of Winter Springs, Florida Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2008. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Winter Springs' comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Winter Springs' financial statements have been audited by McDirmit, Davis & Company, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2008 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there was a reasonable basis for rendering an unqualified opinion that the City of Winter Springs' financial statements for the fiscal year ended September 30, 2008 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The City of Winter Springs' Management's Discussion and Analysis (MD&A) can be found immediately following the report of the independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. iv Profile of the Govemment The City of Winter Springs, incorporated in 1959, is located in Seminole County, which is a part of the greater Orlando metropolitan area in East Central Florida. This area is one of the fastest growing areas in the country. The City currently has a land area of 14.78 square miles and a population of approximately 34,650, a reduction of 250 from the previous year. The City operates according to a Council/Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four-year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City's Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day-to-day operations of the government, and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police and fire protection; the construction and maintenance of highways, streets and other infrastructure; and recreational activities and cultural events. Please note that on October 2, 2008, the City's fire and EMS operations were consolidated with Seminole County. The City maintains both a Water and Sewer Utility, a Stormwater Utility, and Development Services, which function, in essence, as departments of the City of Winter Springs and therefore have been included as an integral part of the City of Winter Springs' financial statements. The annual budget serves as the foundation for the City of Winter Springs' financial planning and control. All departments of the City of Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager then uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Commission for review on or before July 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City of Winter Springs' fiscal year. The appropriated budget is prepared by fund (e.g., general fund), department (e.g., fire department) and division (e.g., prevention division). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget-to-actual comparisons are provided in this report for each individual governmental fund. For the General Fund, the Public and Communications Service Tax Fund and the Road Improvements Special Revenue Fund, these comparisons are presented on pages 25-28 as part of the basic financial statements for the governmental funds. For other governmental funds these comparisons are presented in the governmental fund subsection of this report, which starts on page 77. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Winter Springs operates. Local economy. The City of Winter Springs is primarily a retail, office and residential area with a small amount of light industry and commercial business. Approximately 90% of our tax base is comprised of residential properties. The City's total assessed valuation for real and personal property (net of exemptions) increased 10.8% from the prior year and 160.0% since fiscal year 1998. Although the valuations increased over the prior year, the millage rate decreased by 1.1523 mills, which resulted in a decreased total tax levy of $1,377,798 over last year but an increase of $4,367,894 v since 1998. The City's population has increased 22.0% from that of ten years ago. Local indicators are still reflective of a slow real estate market, low construction activity, increased foreclosures, increased unemployment and decreased spending. This economic downturn has had an impact at both the state and local level on revenue. At the local level revenues such as review and permit fees, investment income and state revenues sources has declined while the City has tried to offset with reduced expenditures and/or project delays. At the state level, they are currently making their second adjustment to the fiscal year 2009 budget. There are on-going discussions about what the best methodology should be used to balance the 2010 state budget, through tax increases or service level decreases or some combination of the two. In addition, Florida's Governor, House of Representatives and Senate continue to submit proposals during the current legislative session to limit local government's ability to generate revenues by limiting taxable property value, maximum millage that could be levied, etc. At this time there is no way to quantify the impact of the numerous proposals being submitted during the current legislative session on the City's fiscal year 2010 budget. The City has been able to maintain a moderate property tax rate, which was at 3.2496 mills during fiscal year 2008 (tax year 2007) and includes 0.1022 mills of voted debt service for Central Winds General Obligation debt up to now. To offset the 1.1523 millage reduction from the previous year, a fire assessment fee was adopted in combination with a $735,000 million appropriation from the General Fund reserves to fund Fire Department operations for fiscal year 2008. Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan (CIP) on November 24, 2008 for fiscal years 2009 through 2013. The CIP is currently being updated with projects and costs through Fiscal Year 2014 with an anticipated completion of Summer 2009. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement by the year it is intended to be purchased or commenced; the amount to be spent per year; and the method of financing such improvement. Each year during the annual budget process the CIP is reviewed to ensure incorporation of all necessary capital improvements. It should be noted; however, that the CI P is not a fixed document but a flexible, dynamic document that may change to reflect changing priorities, opportunities, costs, or different financing approaches. Relevant Financial Policies. There are three fiscal policies that are utilized when preparing and adopting the City's annual budget. The first policy is to maintain, at all times, an Unreserved General Fund fund balance not less than 25% of the total operating expenses of the General Fund, excluding capital outlay and debt. By a super majority vote of the Commission, supplemental appropriation from Unreserved General Fund fund balance may be authorized by the Commission for a General Fund purpose which may potentially reduce the Unreserved General Fund fund balance which would be restored to, at least, the minimum in the following year's budget. This fund balance philosophy carries over to the Water and Sewer Utility, Stormwater Utility and Development Services. Some funds such as debt service exist for very specific purposes; as such, the potential for unforeseen expenditures is very low. Consequently, it is not necessary for all funds to be constrained by this policy. In such case, the budget serves as the sole constraint. The second fiscal policy is that sufficient recurring revenues exist to pay for all recurring costs, thus avoiding the use of non-recurring revenues and fund balance to fund recurring costs. The final fiscal policy is that sufficient recurring and non-recurring revenues are available to fund non-recurring costs. Major Initiatives. During fiscal year 2009, the City anticipates the following projects as approved during the budget process: Replacement of the underground diesel tank at City Hall totaling $37,750; begin year five of the Records Management Project for public records documents and research; vi • numerous road improvements projects at $3,945,000, such as Tuskawilla Road/Blumberg Boulevard, Doran Drive, Hayes Road deceleration/turn lanes, Michael Blake Boulevard, Roberts Family Road, State Road 419/Wade Street, Ranchland dirt roads, Vistawilla Drive deceleration lane and 434 Medians; • road resurfacing projects totaling $250,000; • sidewalk projects totaling $280,000, including Northern Way/Shetland project; • completion of Trotwood Park Improvements totaling $468,000; • begin/completion of the Utility/Public Works Facility -Administration building and storage facility project at an approximate cost of $1,747,000; • begin construction on Magnolia Park outdoor amphitheater at an approximate cost of $1,291,000; • water and sewer system projects totaling $1,900,000; and, • stormwater projects totaling $140,000. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs for its CAFR for the fiscal year ended September 30, 2007. This was the eighth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we will be submitting it to the GFOA to determine its eligibility for a certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Other City departments, although not extensively involved in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult. Appreciation must also be expressed to the City's auditors whose suggestions and attention to detail enhanced the quality of this report. In closing, we would also like to express appreciation to the Mayor and the City Commission for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Winter Springs' finances. Respectfully submitted, Kevin Sm th City Manager Michelle Greco Finance Director vii Certificate of Achievement for Excellence in Financial Reporting Presented to City o f Winter Spring s Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~~'~ xqc 11 DF ThfE~'''''.~jeq Dp{h~D~iT~S\tn ~"~" President CDRPDRdT10N a app S2F~3~`+ UrCA40 ~yj'~j./~~ ~ ,fir ~• ~~~%'IV' f/' Executive Director viii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2008 ELECTED OFFICIALS MAYOR John F. Bush DEPUTY-MAYOR/COMMISSIONER Sally McGinnis COMMISSIONER Rick Brown COMMISSIONER Donald A. Gilmore COMMISSIONER Joanne M. Krebs COMMISSIONER Robert S. Miller CITY MANAGER Ronald McLemore CITY CLERK Andrea Lorenzo-Luaces LEGAL COUNSEL Anthony Garganese Brown, Garganese, Weiss & D'Agresta, P.A. AUDITORS McDirmit, Davis & Company, LLC DEPARTMENT DIRECTORS COMMUNITY DEVELOPMENT Randy Stevenson FINANCE Michelle Greco FIRE CHIEF David O'Brien GENERAL SERVICES Kevin Smith INFORMATION SERVICES Joanne Dalka PARKS AND RECREATION Chuck Pula POLICE CHIEF Daniel Kerr UTILITY/PUBLIC WORKS Kipton Lockcuff ix ~ H ~ ~ Z Q DC = av (q J W Z ~O z~ N OZ Q H~ UO 0 ~ U C C O'C N «~ .O ~ ~ ~ ~ (6 Nd~~m ~~~'6 ~(6 '60~N~ QU~d~ U C tll > p ~~ ~~ (6 C ~(6 O'6 ~O tlI NLLU~fNA ~C~ ~:-d N Uy N U E'-i U C '6 .~(6 .~..NO QUdQ~U w a~ ~ ~ ~ o N ~ o ~ ~ (6 U ~ O .N 'U6 ~ ~W C U ~ ~ N '6 '6 N O (6 > O Q ~ U d ~ U o.~~~ ~~~~ ~ ~~ ~~ ~ Q~~~ .~ ~~ ~~.__~~ Qin~w~~ ~~ U~, o ~ ~~ ~ ~o N~~ ~~ :_ ~~ o ~~ E U U ~ ~ ~ '6NN- Q(n~(~~~ C O .O ~ N O)N .~ ~~ y U -6 ~.N 7 Q 2 ~ d O .~ ~~> ~ w ~~cn~. ~~~ ~a~ .~ U~~~ '6 UNN7 Q Q ~~ m x This page intentionally left blank. FINANCIAL SECTION This page intentionally left blank. CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT' AUDITOR`S REPORT Honorable Mayor and City Commissioners Cr'ty of Winter Springs, Florida We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of and for the year ended September 30, X108, which callectrvely comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. our responsibility is to express an opinion on these financial statements based an our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Sfandards, issued by the Comptroller Genera! 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 rrrisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the Overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion the financial statements referred to above present fairly, in all rnateriai respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Cify of Winter Springs, Florida, as of September 30, 2008 and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the general fund, the public and communications service tax special revenue fund, and the road improvement special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of Ameriea. ~Cl~]I2~vf1T DAMS ~ CC3M('AIV1', LLB (x(15 13. 1t~)~~[~so~ S~~izrr;~r, S~~l~rr 635 • (Jiz~.n~l~c~, 1=1~oal~,~ .3?hi)1 T'1~1..1:I'ilC);\I: d{37-8-)3-5~}()Ci • r,~X ~f)7-(i49_i3339 • LM,all_: f~l c7(cD~~C.'D1~2~41'1'I)~a~+1S.c'O~) \~}!~\II!!'. Et ti'. I':1!\:111 C'i l\!1'~1\il~.\ 172.\( I Ec'L: ~3~:1'}'If)\ . i~\11~.1i I(~,\\ }\\Il I1: 31'. C3k C~I:R'I~[I'll-. t'1 I'Eilil Il' /1L'('f )t \'1'.\\"i'ti • I'I ()liil l:l I\S'k l"t'i:'f l:' ()7' L.:F.I i'I f~77:1i 1'i:lil_Il' t1(:['i li'\l,\\'1'S !n accordance with Government Auditing Standards, we have also issued a report dated March 23, 2009 an our consideration ofi the City of Winter Springs, Florida`s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal contra[ over financial reporting and compliance and the result of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an Integra! part of an audit preformed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis starting on page 3 and the schedule of funding progress for the defined benefit pension trust fund on page 75 are not a required part of the basic fiinancial statements but are supplemental information required by accounting principles generally accepted in the United States ofi America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose ofi forming opinions on the financial statements that collectively comprise the City of Winter Springs, 1=lorida basic financial statements. The introductory section, combining and individual fund financial statements and schedules, the governmental capital asset schedule by function and activity, and statistics[ section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules and the governmental capital asset schedule by function and activity have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express nn opinion on there. March 23, 2009 2 Management's Discussion and Analysis As management of the City of Winter Springs, we offer readers of the City of Winter Springs' financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal which can be found on pages iv-vii of this report. Financial Highlights • The assets of the City of Winter Springs exceeded its liabilities at the close of the most recent fiscal year by $83,258,056 (net assets). Of this amount, $19,602,885 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets decreased by $932,553 or 1 %. There was also a decrease in net assets of $3,620,343 due to a prior period adjustment to record accreted interest on the Series 1999 Improvement Refunding Revenue Bonds (Governmental $1,872,337) and the Series 2000 Water and Sewer Refunding Revenue Bonds (Business-type $1,748,006). The increase in total net assets in the Governmental activities of $813,540 before the prior period adjustment is largely attributed to: $1,600,000 increase in net book value of assets due to $500,000 (net book value) of machinery and equipment asset transfers to Seminole County during consolidation process for fire and emergency medical transport operations and $4,700,000 (offset by $2,600,000 in depreciation) in additional net book value for expenditures for construction of the following capital improvements: Winter Springs Boulevard reconstruction and residential roadway improvements (Road Improvements Special Revenue Fund (SRF)); Town Center Road and Central Winds Parkway Boulevard construction (Transportation Impact Fee SRF); the Senior Center Expansion and Therapy Pool (Senior Center Expansion Capital Projects Fund (CPF)); the Town Center Trail and Infrastructure (1999 Construction CPF); revenue shortfalls in the General Fund (Investment earnings $463,000, Half-Cent Sales Tax $182,000, Municipal Revenue Sharing $87,000 and Fire Assessment Fee $1,170,000) coupled with lower than anticipated expenditures in the General Fund ($1,586,000); and $307,000 of accreted interest payable. The decrease in total net assets in the Business-type activities of $1,746,093 was mainly due to: a decrease of $1,100,000 in cash and reserves because of decreased user charges in Development Services ($373,000) and Water and Sewer Utility Fund ($313,000) and decreased investment earnings in all Business-type activities funds ($463,000); and decreased net book value of depreciable assets as deprecation exceeded new capital purchases because less capital was contributed from developers due to decreased construction activity ($800,000). • As of the close of the current fiscal year, the City of Winter Springs' governmental funds reported combined ending fund balances of $20,758,583. Approximately 93% of this total amount, or $19,298,148, is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, unreserved fund balance for the General Fund was $8,799,595, or 44% of total general fund expenditures. • The City of Winter Springs' total debt increased by $3,285,763 (8%) during the current fiscal year due to accreted interest adjustments of $4,262,198 for current and prior periods for on the Series 1999 Improvement Refunding Revenue Bonds (current $307,556/prior $1,872,337) and the Series 2000 Water and Sewer Refunding Revenue Bonds (current $334,299/prior $1,748,006) and the issuance of a $750,000 note for the Senior Center Expansion and Therapy Pool project. Principal payments were made in the amount of $1,912,407. 3 Overview of the Financial Statements The financial statements focus on both the City as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government) and enhance the City's accountability. This discussion and analysis is intended to serve as an introduction to the City of Winter Springs' basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs' finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of the City of Winter Springs' assets and liabilities, with the difference reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Winter Springs is improving or declining. The Statement of Activities presents information showing how the government's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Winter Springs that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Winter Springs include general government, public safety, physical environment, and culture and recreation. The business-type activities of the City of Winter Springs include a Water and Sewer Utility, Stormwater Utility and Development Services. The government-wide financial statements include only the City of Winter Springs itself (known as the primary government). The City of Winter Springs has no component units. The Water and Sewer Utility, the Stormwater Utility and Development Services function as departments of the City of Winter Springs, and therefore, have been included as an integral part of the primary government. The government-wide financial statements can be found on pages 19-20 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. 4 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Winter Springs maintains 41 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Public and Communications Service Tax Special Revenue Fund, Road Improvements Special Revenue Fund and TLBD Debt Service Fund, all four of which are considered to be major funds. Data from the other 37 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Winter Springs adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison statements have been provided for the General Fund, Public and Communications Service Tax Special Revenue Fund and Road Improvements Special Revenue Fund to demonstrate compliance with this budget on pages 26-29. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund and the nonmajor funds on pages 76-130. The basic governmental fund financial statements can be found on pages 21-29 of this report. Proprietary funds. The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility and Development Services department. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility and Development Services. The basic proprietary fund financial statements can be found on pages 30-34 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Winter Springs' own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 35-36 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 37-74 of this report. Required Supplementary Information (RSI). RSI can be found on page 75 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the Notes to Financial Statements. Combining and individual fund statements and schedules can be found on pages 76-130 of this report. 5 Government-wide Financial Analysis Statement of Net Assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Winter Springs, assets exceeded liabilities by $83,258,056 at the close of the most recent fiscal year. Over half ($52,062,786 or 62%) of the City of Winter Springs' net assets reflect its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related outstanding debt used to acquire those assets. The City of Winter Springs uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Winter Springs' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net assets that are subject to external restrictions as to how they may be used total $11,592,385 (14%). The remaining balance of unrestricted net assets ($19,602,885 or 24%) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2008, the City of Winter Springs is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. This was also the case at the close of the prior fiscal year. The following table reflects the condensed Statement of Net Assets for the current and prior years. For more detail see the Statement of Net Assets on page 19. City of Winter Springs Statement of Net Assets As of September 30 Governmental Activities 2008 2007 Business-type Activities Total Primary Government 2008 2007 2008 2007 Assets: Current and other assets $28,457,972 $29,021,058 Restricted assets 106,982 106,982 Capital assets Total assets Liabilities: Current liabilities Long term liabilities' Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted $8,436,378 $9,849,241 $36,894,350 $38,870,299 3,496,270 3,552,681 3,603,252 3,659,663 59,175,315 57,547,306 33,798,318 34,670,848 92,973,633 92,218,154 87,740,269 86,675,346 45,730,966 48,072,770 133,471,235 134,748,116 3,250,454 3,151,251 21,766,176 21,613,996 106,982 106,982 25,123,612 24,872,229 2,031,349 2,019,910 22,353,850 22,930,057 704,368 735,311 25,089,567 25,685,278 5,281,803 5,171,161 44,120,026 44,544,053 811,350 842,293 50,213,179 50,557,507 39,370,392 37,529,723 8,777,937 8,713,605 12 , 6 92 , 39 4 12 , 6 79 , 32 3 2,814,448 2,735,148 52,062,786 50,209,046 11,592,385 11,448,753 Unrestricted' 14,468,328 15,559,789 5,134,557 6,973,021 19,602,885 22,532,810 Total net assets $62,616,657 $61,803,117 $20,641,399 $22,387,492 $83,258,056 $84,190,609 'Fiscal Year 2007 Balances have been updated to include prior period adjustment of accreted interest payable recorded in fiscal year 2008. 6 Statement of Changes in Net Assets. The following table reflects the Statement of Changes in Net Assets for the current and prior years. For more detailed information see the Statement of Activities on page 20. Note that the government's total net assets decreased by $932,553 or 1 % in fiscal year 2008. There was also a decrease in net assets of $3,620,343 due to a prior period adjustment to record accreted interest on the Series 1999 Improvement Refunding Revenue Bonds and the Series 2000 Water and Sewer Refunding Revenue Bonds. The previous fiscal year, 2007, net assets increased $9,735,646. Governmental activities increased net assets by $813,540 in fiscal year 2008 compared to an increase of $9,530,214 in 2007. There was also a decrease in net assets of $1,872,337 due to a prior period adjustment to record accreted interest on the Series 1999 Improvement Refunding Revenue Bonds. The increase in total net assets in the Governmental activities of $813,540 before the prior period adjustment is largely attributed to: $1,600,000 increase in net book value of assets due to $500,000 (net book value) of machinery and equipment asset transfers to Seminole County during consolidation process for fire and emergency medical transport operations and $4,700,000 (offset by $2,600,000 in depreciation) in additional net book value for expenditures for construction of the following capital improvements: Winter Springs Boulevard reconstruction and residential roadway improvements (Road Improvements Special Revenue Fund (SRF)); Town Center Road and Central Winds Parkway Boulevard construction (Transportation Impact Fee SRF); the Senior Center Expansion and Therapy Pool (Senior Center Expansion Capital Projects Fund (CPF)); the Town Center Trail and Infrastructure (1999 Construction CPF); revenue shortfalls in the General Fund (Investment earnings $463,000, Half- Cent Sales Tax $182,000, Municipal Revenue Sharing $87,000 and Fire Assessment Fee $1,170,000) coupled with lower than anticipated expenditures in the General Fund ($1,586,000); and $307,000 of accreted interest payable. Business-type activities decreased net assets by $1,746,093 in fiscal year 2008 compared to an increase of $205,432 in 2007. There was also a decrease in net assets of $1,748,006 due to a prior period adjustment to record accreted interest on the Series 2000 Water and Sewer Refunding Revenue Bonds. The decrease in total net assets in the Business-type activities of $1,956,093 was mainly due to: a decrease of $1,100,000 in cash and reserves because of decreased user charges in Development Services ($373,000) due to low construction activity, Water and Sewer Utility Fund ($313,000) due to record rainfall levels in August mainly due to Tropical Storm Fay and decreased investment earnings and unrealized decline in market value in all Business-type activities funds ($463,000); and decreased net book value of depreciable assets as deprecation exceeded new capital purchases because less capital was contributed from developers due to decreased construction activity ($800,000). Following the Changes in Net Assets table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business-type activities as well as the revenue "source" for each. Additional information regarding the changes in fund balance of the governmental and business-type activities can be found in the section entitled Financial Analysis of Government's Funds on pages 11- 13. Note that the first graph depicts governmental program-specific revenues and expenses. For this graph, the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. 7 City of Winter Springs Changes in Net Assets For The Year Ended September 30 Governmental Activities Business-ty pe Activities Total Primary Government 2008 2007 2008 2007 2008 2007 Revenues: Program revenues: Charges for services $7,747,409 $5,629,723 $8,899,046 $9,581,672 $16,646,455 $15,211,395 Operating grants and contributions 207,833 115,455 207,833 115,455 Capital grants and contributions 2,628,580 6,484,256 223,858 1,176,280 2,852,438 7,660,536 General revenues: Property taxes 7,130,088 8,265,545 7,130,088 8,265,545 Utility taxes 3,975,766 5,841,125 3,975,766 5,841,125 Business tax receipts 139,726 - 139,726 - Intergovernmental - unrestricted 3,445,120 3,752,351 3,445,120 3,752,351 Investment income and miscellaneous 675,395 1,618,841 197,902 625,328 873,297 2,244,169 Total revenues 25,949,917 31,707,296 9,320,806 11,383,280 35,270,723 43,090,576 Expenses: General government 6,856,549 8,452,023 6,856,549 8,452,023 Public safety 11,298,434 10,726,069 11,298,434 10,726,069 Physical environment 5,694,096 2,390,097 5,694,096 2,390,097 Culture and recreation 2,511,272 2,738,681 2,511,272 2,738,681 Interest and other fiscal charges on long-term debt' 964,798 974,245 964,798 974,245 Water and Sewer' 7,150,841 6,837,071 7,150,841 6,837,071 Development Services 687,592 860,215 687,592 860,215 Stormwater 1,039,694 982,758 1,039,694 982,758 Total expenses 27,325,149 25,281,115 8,878,127 8,680,044 36,203,276 33,961,159 Increase in net assets before transfers (1,375,232) 6,426,181 442,679 2,703,236 (932,553) 9,129,417 Transfers 2,188,772 2,813,116 (2,188,772) (2,813,116) - - Increase (decrease) in net assets 813,540 9,239,297 (1,746,093) (109,880) (932,553) 9,129,417 Net assets -October 1 61,803,117 54,145,240 22,387,492 23,930,066 84,190,609 78,075,306 Prior Period Adjustment' - (1,581,420) - (1,432,694) - (3,014,114) Net assets -September 30 $62,616,657 $61,803,117 $20,641,399 $22,387,492 $83,258,056 $84,190,609 'Fiscal Year 2007 Balances have been updated to include prior period adjustment of accreted interest payable recorded in fiscal year 2008. Governmental Program Specific Revenues and Expenses 12.000.000 _... _ . _ _. . 3 10,000,000 -_.- ___ ~~ r~w._ -_ ___-___{ a 0,000,000 ~~~._--------- -- - -- ti,000,00U _-- .~_ ___ ____---___ -_ 4,COOA00 ___ __- _... _- --- ~ 2,000,000 -- -- -__.. ~_ _ .._.. `. I 0 ....._... _.:._....~. _. _ r .._ _ -_._. _~....._~ General Public Safety Physical Culture & Interest on Government Environment Recreation Long-term Qebt Revenues ^ Expenses Governmental Revenues by Source Investment Income and Miscellaneous 3°6 Capital and Operating Grants and Contributions 11% 9 Intergovernmental Revenues 13% Business-type Activities Revenues and Expenses a,coo,ooo ~,coo,ooo 6, 000, 000 5, 000, 000 4,000,000 3,000,000 2,000,000 1,000,000 0 Business-type Activities Revenues by Source Capital and C?perating Grants and Investment Income Gontributions 2"1o and Miscellaneous _~. 2% f'; }; ,~ a~}a €<s rte,.°e~c~t; 10 Financial Analysis of the Government's Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City of Winter Springs' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs' financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2008, the City of Winter Springs' governmental funds reported combined ending fund balances of $20,758,583, an increase of $307,887 over the prior year. Approximately 93% or $19,298,148 of this total amount constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed for such purposes as debt service, inventories and prepaid costs. The General fund is the chief operating fund of the City of Winter Springs. At the end of the current fiscal year, unreserved fund balance of the General Fund was $8,799,595, while total fund balance reached $9,101,094. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved and total fund balance represent 44% and 46% respectively, of total General Fund expenditures. The fund balance of the City of Winter Springs' General Fund increased by $2,159 during the current fiscal year, which is $839,863 less than the prior year's addition to Fund Balance of $842,022. While transfers out to other funds were lower by $416,678 and transfers in from other funds were higher by $1,400,185 compared to the previous year, expenditures were up higher by $206,563, revenues were lower by $2,109,163 and capital leases proceeds were lower by $341,000 as no new capital leases were entered into compared to the previous year. The change in actual revenues and expenditures between fiscal year 2007 to fiscal year 2008 can be explained by a decrease of $1,353,329 in ad valorem tax revenues due to the adoption of a fire assessment fee which was collected in a special revenue fund. Other revenue decreases from the previous year due to the declining economy were: Half-Cent Sales Tax by $181,907; Municipal Revenue Sharing by $86,932; and investment income of $462,653, due to reduced yields ($393,560) and unrealized decline in market value ($69,093). Transfers in mainly increased due to: $1,205,000 for fire assessment fee receipts for fire department operations; $394,888 for a loan repayment from the Senior Center Expansion and Therapy Pool capital project fund; and a decreased transfer ($210,000) from Water and Sewer Utility Fund for the fair share transfer. Personnel expenditures increased $435,246 over the previous year for annual merit increase program of up to 4% based solely on the individual employee's performance, a 0.5% increase in the employer contribution rate to the City employee pension plan ($120,000) and for employer contributions to health insurance premiums ($31,000). Although salaries increased from fiscal year 2007 to 2008 ($290,000), the increase was not as much as was originally anticipated during budget process ($535,000) due to position vacancies within the various departments and position upgrades not being achieved in the Fire Department. Operating expenditures increased $253,595 over the previous year while and capital expenditures decreased $482,278 as a result of the following: General Government operating expenditures increased a total of $130,000 due to an $200,000 increase for the UCF Incubator economic development incentive program, a $40,000 decrease due to an decrease in the 17-92 CRA tax payment to Seminole County and a $30,000 decrease in property lease costs for Central Winds Park roadway; General Services operating expenditures increased $36,000 mainly due to insurance 11 premiums and insurance settlement costs; Information Services operating and capital expenditures for special projects, which included hardware, software, servers, server applications and consultants, decreased $74,000 while the KIVA/GIS project expenditures also decreased $40,000 due to the KIVA Accela wireless project completion; Community Development operating expenditures increased mainly due to $30,000 for EAR consulting fees, $27,000 in increased utilities and street lighting costs due to rate increases by service providers as well as additional streetlights in residential areas, $31,000 for a new vehicle and $55,000 for the Florida Home Finance Corporation -Home Again grant program (which was offset by grant revenues); Police operating expenditures increased $87,000 mainly due to increased costs, such as fuel and tires, while their capital expenditures decreased by $391,000 mainly due to the purchase of 23 vehicles and related equipment (light bars and radios) replacements in the previous fiscal year; Fire operating expenditures increased $66,000 mainly due to outside consulting fee for fire assessment program and invoicing costs, while their capital expenditures decreased by $30,000 mainly due to deferral of equipment replacement (radios and saws); Parks and Recreation operating expenditures decreased $83,000 mainly due to decreased community event costs of $80,000 (July 4th event). Transfers out to other funds decreased $416,678 mainly due to a $394,000 transfer in fiscal year 2007 for an advance for the Senior Center Expansion and Therapy Pool in the Senior Center Expansion Capital Project Fund until the line of credit note had been drawn down. Proprietary funds. The City of Winter Springs' proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the Water and Sewer Utility Fund at the end of the year amounted to $3,633,386 and total net assets decreased $911,645. There was also a decrease in net assets for a prior period adjustment of $1,748,006 to record accreted interest payable on the Series 2000 Water and Sewer Refunding Revenue Bonds for fiscal year 2001 to fiscal year 2007. The change in net assets was an increase of $597,449 in fiscal year 2007, which included $895,868 in capital assets contributed by developers. Fiscal year 2008's change ($1,509,094 without accreted interest payable prior period adjustment of $1,748,006) in net assets differs from the previous fiscal year's change in net assets due to: developer contributions of water and sewer line improvements of $184,798, a decrease of $711,000, due to low construction activity; record levels of rainfall mainly during August due to Tropical Storm Fay which left water and sewer user revenues lower by $313,000; reduced investment income of $268,000 due to decrease in investment yields and $73,000 for unrealized declines in market value; reduced transfers out to the Utility/Public Works Facility Capital Project Fund by $450,000 and the General Fund for the fair share transfer by $210,000; decreased water and sewer connection fees of $80,000 resulting from reduced construction activity; increased operating expenses of $336,000 to include salaries/benefits, materials and supplies; and an increase of $334,299 for accreted interest. Rates remained unchanged in fiscal year 2008. A rate study was approved by the City Commission on February 25, 2008. The consultant is in the final stages of completion of the rate study. It is anticipated a Commission workshop will be held in May 2009 to review the rate study results and discuss proposed rate increases. The Development Services Fund net assets decreased $677,224 from $1,374,774 at September 30, 2007 to $697,550 at the end of the current fiscal year. The change in net assets was a decrease of $536,838 in fiscal year 2007. Fiscal year 2007's change in net assets contains no contributed capital assets by developers. Fiscal year 2008's change in net assets is similar to the previous fiscal year's change in net assets mainly due to: continued decrease in residential and commercial construction activity within the City which reduced plan review and permit fee revenues by approximately $373,000 from the previous year; reduced outsourced inspection service costs by $100,000; reduced salaries and benefits by $60,000 due to vacancies; and reduced transfers out to other funds by $104,000 mainly due to technology improvement projects such as KIVA Citizen (nearing completion), KIVA/GIS (continuing into fiscal year 2009) and records management delays while a new contractor was found. Construction activity is predicted to be minimal in fiscal year 2009 and possibly into fiscal year 2010. This fund was established in fiscal year 2003. Prior to 2003, this activity was captured in the General Fund. A rate study was performed in fiscal year 2003 with the inception of this fund. The rates in this fund were last 12 adjusted in August 2005 with the adoption of Resolution 2005-29. Cost reductions, such as position eliminations, and project deferrals were implemented in the fiscal year 2009 budget as a result of the continued downturn in construction activity. The stormwater Utility Fund net assets decreased $157,224 from $4,668,012 at September 30, 2007 to $4,510,788 at the end of the current fiscal year. The change in net assets was an increase of $144,821 in fiscal year 2007, mainly due to $156,137 of contributed capital assets by developers. Fiscal year 2008's change in net assets differs from the previous fiscal year's change in net assets by $302,045 due to: continued decrease in residential and commercial construction activity within the City which reduced engineering inspection fee revenues ($41,000); decreased developer contributions stormwater improvements ($156,137) as no contributed capital assets were received this year; transfers out to other funds increased due to additional contributions for stormwater's share of the Utility/Public Works Facility ($50,000); decreased investment income ($26,000) due to decrease in investment yields and unrealized declines in market value; and increased operating expenses of $58,000 to include salaries/benefits, materials and supplies. The declines in net assets were slightly offset by increased stormwater management fees ($15,000) and contributions toward the Gee Creek bank stabilization grant project ($30,000). General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in $1,399,892 in additional appropriations from fund balance during the year from an appropriation to fund balance of $330,495 in the original budget to appropriations from fund balance of $1,069,397 in the final budget. The majority of the increased appropriation can be summarized as follows: • $184,000 decrease in Half-Cent Sales Tax and $74,000 decrease in Municipal Revenue Sharing due to declining economic conditions; • $80,000 decrease in Investment Income due to interest rate reductions; • $200,000 increase for University of Central Florida Incubator Investment; • $196,000 increase for purchase order roll-forwards; • $44,000 increase for Senior Center Renovations; • $40,000 increase for City Hall Maintenance for facade, parking lot and roof repairs and air conditioning replacement; • $762,000 decrease in expenditures to offset the decrease in fire assessment rate reduction by: eliminating July 4th event ($121,000); Hometown Harvest event ($16,000); additional tree trimming ($55,000); Code Enforcement court ($20,000); automated ticketing system ($18,000); grants and aids ($10,000); and delaying: fire department tools, equipment and software purchases ($22,000); fire truck replacement ($208,000); construction of Hound Ground Dog Park ($190,000) and Bear Creek Bridge improvements ($50,000); and, • $1,231,000 decrease in transfers in from: the Fire Assessment Fee Special Revenue Fund due to adoption of lower fire assessment fee ($1,335,000 decrease) which was offset by a higher than anticipated assessment collection rate ($165,000 increase); the Medical Transport Special Revenue Fund as a new fire truck was not purchased ($162,000 decrease); the Senior Center Expansion Capital Project Fund for a loan repayment ($394,888 increase); the Hazard Mitigation Grant Program Capital Project Fund as a loan was not necessary to fund project ($93,623 decrease); Public and Communication Service ($27,000 decrease) and Electric Franchise Fee ($43,000 decrease) Special Revenue Funds as revenues were lower than anticipated; and Water and Sewer Utility Fund ($101,000 decrease) as Utility Billing actual expenditures were lower than anticipated. 13 The actual results of the General Fund for the year show an appropriation to fund balance of $2,159 compared to a final budgeted appropriation from fund balance of $1,069,397. The favorable variance of $1,071,556 is primarily comprised of the following: • $97,000 and $72,000 unfavorable variances in Half-Cent Sales Tax and Municipal Revenue Sharing, respectively, due to further revenue reductions as a result of the downturn in the economy and the housing market; • $139,000 unfavorable variance in Investment Income due to even lower than anticipated investment yields and unrealized decline in market value of investments; • $67,200 favorable variance in rental and other revenues due to one-time collections of cell phone tower revenues; • $45,000 unfavorable variance in concession receipts due to decision to outsource the concession operation to the Winter Springs Youth Sports organization; • $210,000 unfavorable variance in transfers in due to a reduced transfer from Water and Sewer Utility Fund for fair share transfer; • $29,000 favorable variance in Executive Government due to lower than anticipated salaries and benefits costs ($9,000) and lower than anticipated operating expenses ($20,000); • $11,000 favorable variance in General Government mainly due to unspent contingency funds; • $131,000 favorable variance in Finance and Utility Billing mainly due to mid-year hires of two positions and lower benefit cost ($40,000) as well as lower than anticipated Finance expenses ($22,000) and Utility Billing expenses ($45,000) due to lower than expected customer base growth; and budgeted expenditures that were rolled over to fiscal year 2009 for the automated accounts receivable and deposit process ($17,000). The favorable variance in Utility Billing was offset by reduced transfers in of $107,000 from the Water and Sewer Utility Fund creating a net favorable variance of $23,000; • $185,000 favorable variance in General Services mainly due to: delayed replacement of City Hall underground diesel tanks ($37,000); lower than anticipated insurance premiums and settlement costs ($80,000); lower than anticipated operating expenses ($38,000); and repair and maintenance costs rolled into fiscal year 2009 for air conditioning and facade repairs ($19,000) and conference room furniture ($5,000); • $223,000 favorable variance in Information Systems mainly due to: position vacancies ($59,000); delay in KIVA Citizen project ($21,000); lower than anticipated operating ($53,000); and capital expenditure costs rolled into fiscal year 2009 for server room air conditioning repairs ($32,000) and operating costs for scanning project outsource ($50,000); • $73,000 favorable variance in Community Development mainly due to: lower than anticipated expenses in Urban Beautification, such as utility, street lighting and grounds maintenance costs ($42,000); lower than anticipated operating expenses in other divisions ($4,000); and costs rolled into fiscal year 2009 for EAR based amendments ($20,000); • $2,000 favorable variance in Police mainly due increased fuel and maintenance expenses; • $613,000 favorable variance in Fire mainly due to firefighters who did not realize their budgeted position upgrades and/or paramedic incentives as they did not meet the qualifications for the upgrades or incentives, from vacancies throughout the year in Administration, Operations and Training (Fire Chief {$137,000}, Firefighters {$315,000} and Training Officer {$42,000}) as well as lower entry salaries for new hires replacing retirees and lower than anticipated expenses ($100,000); • $138,000 favorable variance in Public Works mainly due to: position vacancies throughout the year ($80,000) and lower than anticipated expenses ($58,000), such as repair and maintenance grounds and fuel; and, • $180,000 favorable variance in Parks and Recreation mainly due to: position vacancies throughout the year in concessions, parks and grounds and splash playground ($82,000); lower than anticipated expenses ($96,000), largely in concessions, athletics and parks and grounds; budgeted expenditures that were rolled over to fiscal year 2008 for Fall Event 2008 ($4,600) and ActiveNet Software project ($19,000). 14 The comparison of budgeted results to actual results for the General Fund is shown on pages 26-27. Capital Asset and Debt Administration Capital assets. The City of Winter Springs' investment in capital assets for its governmental and business-type activities as of September 30, 2008 amounts to $92,973,632 (net of accumulated depreciation), for an increase of $755,478 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of Winter Springs' investment in capital assets for the current fiscal year was 0.8% (a 2.8% increase for governmental activities and a 2.5% decrease for business- type activities). Major capital asset events during the current fiscal year included the following: • Completion and capitalization of the Town Center Streetscape totaling $143,336 ($68,284 and $75,052 was spent in 2007 and 2008, respectively); • Completion and capitalization of the Town Center Road and Central Winds Park Blvd totaling $939,660 ($35,263, $230,569, $112,493, $175,016 and $386,319 was spent in 2003, 2004, 2005, 2006, 2007 and 2008, respectively); • Completion and capitalization of the Winter Springs Blvd reconstruction and design totaling $2,279,856 ($4,570, $41,286, $57,577, $720,853, and $1,455,570 was spent in 2004, 2005, 2006, 2007 and 2008, respectively); • Completion and capitalization of the Town Center Trail & Infrastructure totaling $1,638,507 ($6,207, $8,238, $16,858, $28,591, $1,310,149, and $268,464 was spent in 2003, 2004, 2005, 2006, 2007 and 2008, respectively); • Completion and capitalization of the Oak Forest Landscape & Improvements totaling $130,312 ($27,597, $5,175, $64,732, $7,720, $1,740, and $23,348 was spent in 2003, 2004, 2005, 2006, 2007 and 2008, respectively); • Completion and capitalization of road resurfacing totaling $180,492; • Completion and capitalization of TLBD Phase II Signage totaling $196,139; • Completion and capitalization of TLBD Phase II Lighting totaling $300,128 ($114,762, $153,537 and $31,829 was spent in 2006, 2007 and 2008, respectively); • Continued construction of Veteran's Memorial totaling $107,623; • Continued Residential Roadway Reconstruction totaling $1,071,456; • Continued construction on Hayes Road Turn Lanes totaling $54,308; • Completion and capitalization of the Fire Hazard Mitigation Grant Program totaling $58,226; • Completion and capitalization of the Senior Center expansion and Therapy pool totaling $1,839,988 ($34,014, $1,423,288 and $382,686 was spent in 2006, 2007 and 2008, respectively); • Continued construction on Trotwood Park improvements totaling $69,690; • Completion and capitalization of sewer relining project totaling $190,024; • Continued electrical improvements at Water Treatment Plant No. 3 totaling $326,729; • Completion and capitalization of the Rotary Screen Thickener at the West Waste Water Treatment Plant totaling $188,896 ($28,501, $92,630 and $67,765 was spent in 2006, 2007 and 2008, respectively); • Completion and capitalization of the Canal Piping -Flamingo to Moss Road totaling $112,776 ($6,000 and $106,776 was spent in 2007 and 2008, respectively); and, • Capitalization of contributed water and sewer lines totaling $184,798. 15 Additional information on the City of Winter Springs' capital assets can be found in Note 7 on pages 56- 58 of this report. City of Winter Springs Capital Assets (Net of Depreciation) As of September 30 Land Buildings Improvements other than buildings Machinery and equipment Infrastructure Construction in progress Total Governmental Activities 2008 2007 $9,848,716 $9,848,716 9,136,819 7,550,084 8,351,377 8,585,159 Business-type Activities Total Primary Government 2008 2007 2008 2007 $5,344,916 $5,344,916 314,768 340,201 26,802,027 27,635,969 1,882,701 2,728,887 899,783 864,947 28,427,672 23,655,995 $15,193,632 $15,193,632 9,451,587 7,890,285 2,782,484 3,593,834 28,427,672 23,655,995 35,153,404 36,221,128 1,528,030 5,178,465 436,823 484,815 1,964,853 5,663,280 $59,175,315 $57,547,306 $33,798,317 $34,670,848 $92,973,632 $92,218,154 Long-term debt. At September 30, 2008, the City of Winter Springs had total debt outstanding of $46,255,409, an increase of $3,285,763 from $42,969,646 at September 30, 2007. Taking out the prior period adjustment totaling $3,620,343 for accreted interest payable and $641,855 for current year accreted interest payable, leaves a decrease in long-term liabilities of $976,435. Total bonded debt of the City at the end of the current fiscal year was $39,272,274, for a decrease of $1,650,854 over the prior year. This amount does not include accreted interest of $4,262,198. Of the total amount of bonded debt, $3,000,000 comprises debt backed by the full faith and credit of the government and $1,990,000 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. The remainder of the City of Winter Springs' bonded debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). Other than principal payments, there were no changes in the structure of the City's bonded debt during fiscal year 2008. As mentioned above, accreted interest was recorded for the current and prior periods totaling $2,179,893 for the Series 1999 Improvement Refunding Revenue Bonds (current $307,556/prior $1,872,337 for fiscal year 2000 to 2007) and $2,082,305 for the Series 2000 Water and Sewer Refunding Revenue Bonds (current $334,299/prior $1,748,006 for fiscal years 2001 to 2007). Additional information can be found in Note 2 on page 45 of this report regarding this prior period adjustment. During the fiscal year the following activity occurred on the City's Notes: ^ A note in the amount of $750,000 was issued for the Senior Center Expansion and Therapy Pool. ^ Principal payments were made totaling $92,092 during the year. The City of Winter Springs' Water and Sewer Utility, General Obligation and 1999 and 2003 Improvement debt maintain underlying ratings of "A+", "AA" and "A+", respectively, from Standard & Poor's. 16 Additional information can be found in Note 9 and 16 on pages 58-63 and pages 72-74, respectively, of this report for important information regarding required Material Events Disclosures as related to downgraded the insured financial strength ratings of Financial Guaranty Insurance Company, MBIA and Ambac Assurance Corporation as they relate to the City's bond issuances. There are no limitations placed on the amount of debt the City may issue either by the City's charter, code of ordinances or by the Florida State Statutes. Additional information on the City of Winter Springs' long-term debt can be found in Notes 7 and 8 on pages 56-58 of this report. City of Winter Springs Long Term Debt As of September 30 Improvement Refunding Revenue Bonds, Series 1999 Water & Sewer Refunding Revenue Bonds, Series 2000 Special Assessment Revenue Bonds, Series 2001 Water & Sewer Refunding Revenue Bonds, Series 2001 Water & Sewer Refunding Revenue Bonds, Series 2002 Limited General Obligation Bonds, Series 2002 Improvement Refunding Revenue Bonds, Series 2003 Capital Improvement Revenue Note, Series 2004A Capital Improvement Revenue Note, Series 2004 Capital Improvement Revenue Note, Series 2006 Accreted Interest Payable Capital Lease Compensated Absences Adjustments for Issuance Discounts and Deferred Governmental Activities 2008 2007 $5,188,970 $5,458,970 1,990,000 2,040,000 3,000,000 3,070,000 8,045,000 8,425,000 405,169 438,979 719, 918 - Business-type Activities Total Primary Government 2008 2007 2008 2007 $6,724,191 $6,779,191 4,755,000 4,995,000 10,405,000 11,055,000 $5,188,970 $5,458,970 6,724,191 6, 779,191 1,990,000 2,040,000 4,755,000 4,995,000 10,405,000 11,055,000 3,000,000 3,070,000 8,045,000 8,425,000 405,169 438,979 719,918 - 285,700 313,900 285,700 313,900 2,179,893 1,872,337 2,082,305 1,748,006 4,262,198 3,620,343 227,786 333,101 227,786 333,101 899,743 791,012 182,621 169,526 1,082,364 960,538 Refunding Costs (57,620) (62,367) (778,267) (837,666) (835,887) (900,033) Total $22,884,559 $22,680,932 $23,370,850 $23,909,057 $46,255,409 $46,589,989 'Fiscal Year 2007 Balances have been updated to include prior period adjustment of accreted interest payable recorded in fiscal year 2008. Additional information can be found in Note 2 on page 45 of this report regarding this prior period adjustment. Economic Factors and Next Year's Budgets and Rates On January 29, 2008, the Florida electorate approved an amendment to the Florida Constitution relative to property taxation which will become effective with the next fiscal year (fiscal year 2009) with the exception of the ten percent (10%) assessment cap on non-homestead property which will 17 not become effective until fiscal year 2010. The Amendment One highlights are as follows: • Doubling of the Homestead Exemption from $25,000 to $50,000; • Allowance of up to $500,000 of accumulated Save-Our-Homes exemption can be transferred (portability) from an existing homestead property to a newly purchased one; • Creation of a new exemption for the first $25,000 of assessed value for tangible personal property; and, • 10% cap per year on the increase of the assessed value of anon-homestead property (effective fiscal year 2010). The result of this and other factors was a 9% decline in the tax year 2008/fiscal year 2009 final gross taxable property value which was both budgeted and realized. During this same time, a rather difficult decision was made to consolidate the city fire and Emergency Medical Service (EMS) operations with Seminole County and eliminate the fire assessment fee being charged to our residents. This decision meant the citizens of Winter Springs would be charged a Municipal Service Taxing Unit rate of 2.3299 mills by Seminole County to pay for these services. Even with the consolidation of the fire and EMS operations, the City levied an operating millage rate of 2.4714 mills to offset the 9% decline in property values. The City considered many factors during the preparation of the fiscal year 2009 budget. In addition to the adverse legislative effects, large reductions to intergovernmental revenues were anticipated. The 2009 projections from the Legislative Committee on Intergovernmental Relations for municipal revenue sharing and half-cent sales tax were markedly down from fiscal year 2008. Half way into the 2009 fiscal year the revenue projections have been revised further downward. Nearly every other category of revenues was budgeted to decline with the exception of utility taxes and fines/forfeitures. Utility taxes have been budgeted to increase about 3% and with the implementation of a new traffic light safety program the General Fund was budgeted to gain additional revenues of $75,000, which was reduced from the original projection of $325,000. The economic downturn, especially in the housing market, is directly correlated with impact fees and those revenues in the Development Services fund. The budget for five positions was eliminated from the 2009 Development Services Fund budget. The affected funds have seen a steady downward trend in revenues but have aggressively countered with expenditure reductions. Due to lagging impact fee funds some capital projects have been curtailed and/or delayed even if leveraged by grant revenues as was the case with the Central Winds park project. Cost-reducing measures have been incorporated into the budget wherever possible. Neighborhood park maintenance will be outsourced. Additionally community events have been removed from the budget with the idea that fund-raising and joint sponsorships will be sufficient to subsidize any community events that are held. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs' finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is available at the City of Winter Springs' website located at: www. winters ringsfl. orq. 18 BASIC FINANCIAL STATEMENTS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS September 30, 2008 Primary Government Governmental Business-type Activities Activities Total Assets: Cash and cash equivalents $ 19,410,475 $ 7,091,963 $ 26,502,438 Receivables, net 5,753,288 1,005,633 6,758,921 Inventories - at cost 8,740 20,258 28,998 Due from other governments 41,960 - 41,960 Prepaid costs 294,539 - 294,539 Restricted assets: Cash and cash equivalents 106,982 1,448,166 1,555,148 Investments - 2,048,104 2,048,104 Bond issuance costs 187,264 318,524 505,788 Capital assets not being depreciated 11,376,746 5,781,739 17,158,485 Capital assets being depreciated, net of accumulated depreciation 47,798,569 28,016,579 75,815,148 Receivables, long-term 2,761,706 - 2,761,706 Total Assets 87,740,269 45,730,966 133,471,235 Liabilities: Accounts payable and other current liabilities 1,803,309 575,551 2,378,860 Accrued interest payable 261,039 438,798 699,837 Unearned revenue 67,723 - 67,723 Liabilities payable from restricted assets 106,982 704,368 811,350 Noncurrent liabilities: Due within one year 1,118,383 1,017,000 2,135,383 Due in more than one year 21,766,176 22,353,850 44,120,026 Total Liabilities Net Assets: Invested in capital assets, net of related debt Restricted for: Capital projects Debt service Renewal and replacement Physical environment Public safety Unrestricted 12,692,394 2,048,104 718, 942 47,402 5,134,557 52,062,786 Total Net Assets 25,123,612 25,089,567 50,213,179 39,370,392 5,528,193 1,158,936 2,036,608 54,200 14,468,328 5,528,193 3,207,040 718, 942 2,084,010 54,200 ~ a ~n~ RRti $ 62,616,657 $ 20,641,399 $ 83,258,056 The accompanying Notes to Financial Statements are an integral part of these statements. 19 This page intentionally left blank. 0 O N O M L Q N N w (6 W N H O LL C y N~a" N N ,~ N ~ C ~ N ~ Q ~ X ~ W ~ ~U Z V V a0 ~ N M ~ N O M (O O r V V M N O ~ ~ ~ N ~I V O ~ N EA L r ,O V ~ r ~~`a R ~ _ m ~L a_ R C ~ r C .~ >a O (7 N ~ ~ O y Q y f0 C 'i r ,^~ V O ~ U ~ ~ ~ ~ ~ ~ C O N~ ~;,~ ~ ~ LL ~ ~~+ ~ ~ r R Q ~ C ~ ~ (7 O O U a` ~ N N V •L L fn U N N C N Q X W EA ~~ O N I~ M (O V rn ~ O Ln ~ ~ M M ~ I~ -~ ~ ~ ~ N ~ ~ a 0 V O N ~ O I~ ~ V N ' O O M V O 00 (O O (O N ~ O N Ln 00 (O (O N v co N N ~? ' Ln 00 ' M (7 O (7 V M 00 (O V O ~ N ~? 00 00 N ' IO O ~ I~ O V O N N a0 IV O O ~ N ~ N V III EA O V (O N a0 O vc~o~r o~ v ~ V O N I~ ~ ~ ~ ~ ~ N a0 N (O ~ O M (O ~ ~ N I~ ~ N o ~ ~ o m - s > O U ~ (6 (6 N ~ ~ .~ Q (6 ~ a--~ N C > ~ E N ~ -O N O ~ pi O ~ ~ C R (6 ~ N ~ ~ O O O N ~ ~ ~ > U! E ~ U .U ~ ~ O (B Q~ C Q j, ~~ O O r j N 7 L 7 ~ ~ o U ~ ~ U ~ ~ ~ LL V (O O H O 00 O O O~ '~ M N M (O ~ M ~ ~ ~ a0 (O N ~ O O ~ ~ V ~ (O V L(') L(') O~~ N O L(') O M O V V V~ (O O Ln O Ln ('7 ('7 N 0 0 00 N M N O ~ I~ M V I~ O M N~ M ~ V O ~ V 00 L(') O a0 O N co ~ ri ri Sri " ~ ri ri ~ 00 `-' 00 EA L(') M L(') ~~ I I I ' O O O O O ~ mv`~~~ I ~ rn~aoovoc~ ~ m ~ ~ V M N N ~ a 0 ~ V V N ~ ~ V S O `-' `-' `-' N `-' N EA ~ ~ ~ I~ 00 O O O L(') N ~ O V I~ ~ N a0 (O N C O I~ O V~ M~ c~ o r r c~ ~ ao ~ v c~ co O L(') O L(') L(') a0 V M~ N (O V ~ I~ M V I~ a0 ~ ~ ~ I~ O ~ V (O ~ a0 (O a0 (O (O I~ M M N I~ ~ ~ ~ ~? ~ ' ' ~ ~ Ln Ln (7 00 00 V M M N N N ~ N N a0 N ~? i i Ch (7 O N ~? I~ O M I (O I L(') M ~ L(') V L(') (O N O V M V O O ~ I~ ~ O V N ~ O a0 (O ~ ~I~I~3 N V I~ O V O O ~ ~ a0 ~ (O N O I~ ~ 00 M ~ 00 M I~ O (O O a0 N ~ ~ ~ O M III ~ ~ O o ~ c ~ m ~ N ~ +~ O U ~ C ~ C ~ ~~ (6 N ~ ~ ~ ~ ~ fn ~ ~ C ~ C Q ' N > (6 ~ E ~~ ~ ~ c o `~ c ~ ~ ~ N _ fn N U (6 ~ . ~ o ~ c ~ ~ ~~ ~ a> N ~, ~ > N ~ ~ ~ ~ O fn N O ~ ~ ~ N ~ N N O _~ ~ O O~ O U (~6 ~ (~6 N ~ ~ CO ~ ~ ~ ~ N '~ N U' H Z ~ Z o ~ ~~ o +~ ~ U C (6 O U O- O '~ ~ ~ N N ~ U ~ fn (6 N ~ ~ ~ Q ~ ~ ~ ~ Q ~ ~ a ~ ~ ~ ~ O ~ N N ~ (6 ~ ~ (6 ~ O H ~ ~ D ~ CO CITY OF WINTER SPRINGS, FLORIDA Assets: Cash and cash equivalents Receivables, net Inventories, at cost Due from other governments Due from other funds Prepaid costs Special assessments receivable Restricted assets: Cash and cash equivalents Total Assets Liabilities and Fund Balances: Accounts payable Accrued liabilities Due to other funds Deferred revenue Unearned revenue Payable from restricted assets Total Liabilities Fund balances: Reserved: Inventories and prepaid costs Debt service Unreserved, reported in: General fund Special revenue funds Capital projects funds Total fund balances Total Liabilities and Fund Balances BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2008 Special Revenue Public & Road Communications Improvements TLBD r_`.........I C.... ...... T.... C.....J fl.. h+ C.... ...... $ 7,964,843 $ - $ 516,051 $ 184,257 177,991 142,129 5,225,931 1,560 8,740 - - - 18,411 - - - 1,601,647 - - - 292,759 - - - - - - 1,935,000 106, 982 - - - $ 10,171,373 $ 142,129 $ 5,741,982 $ 2,120,817 $ 322,851 $ - $ 516,051 $ - 575,231 - - - - 135,741 1,452,019 - - - 2,499,306 1,935,000 65,215 - - - 106, 982 - - - 1,070,279 135,741 4,467,376 1, 935,000 301,499 - - - - - - 185,817 8,799,595 - - - - 6,388 1,274,606 - J,IV I,VJY V,JVV I,G/Y,VVV IVJ,V I/ $ 10,171,373 $ 142,129 $ 5,741,982 $ 2,120,817 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore are not reported in the funds Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds Bond issuance costs, which are expenditures in the funds, are deferred and amortized over life of bond Net assets of governmental activities The accompanying Notes to Financial Statements are an integral part of these statements. 21 Other Total Governmental Governmental Funds Funds $ 10,745,324 $ 19,410,475 205,677 5,753,288 - 8,740 23,549 41,960 - 1,601,647 1,780 294, 539 826,706 2,761,706 - 106, 982 $ 11,803,036 $ 29,979,337 $ 386,138 $ 1,225,040 3,038 578,269 13, 887 1, 601, 647 1,206,787 5,641,093 2,508 67,723 - 106, 982 1,612,358 9,220,754 - 301,499 973,119 1,158, 936 - 8,799,595 5,365,596 6,646,590 3,851,963 3,851,963 10,190,678 20,758,583 $ 11,803,036 59,175,315 5,641,093 (23,145,598) 187, 264 $ 62,616,657 22 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS For The Year Ended September 30, 2008 Special Revenue Public & Road Communications Improvements TLBD General Service Tax Fund Debt Service Revenues: Taxes: Property taxes $ 6,912,216 $ - $ - $ - Utility taxes - 3,975,766 - - Business tax receipts 139,726 - - - Permits and fees 76,468 - - - Intergovernmental revenues 3,475,814 - 2,739,150 - Charges for services 562,078 - - - Fines and forfeitures 231,989 - - - Impact fees/assessments - - - 55,482 Investment income 185,879 - 15,192 104,322 Miscellaneous 98,525 - - 10,851 Total revenues 11,682,695 3,975,766 2,754,342 170,655 Expenditures: Current: General government 6,027,104 4,985 - - Public safety 10,169,420 - - - Physical environment 1,129,073 - 14,627 4,062 Culture and recreation 2,147,175 - - - Debt service: Principal retirement 105,315 - - 50,000 Interest and fiscal charges 16,172 - - 102,492 Capital outlay: General government 168,552 - - - Public safety 149,961 - - - Physical environment - - 2,721,380 - Culture and recreation 15,805 - - - Total expenditures 19,928,577 4,985 2,736,007 156,554 Excess (Deficiency) of Revenues Over Expenditures (8,245,882) 3,970,781 18,335 14,101 Other Financing Sources (Uses) Transfers in 8,354,380 - - - Transfers out (106,339) (3,964,393) (52,459) - Note issued - - - - Net other financing sources (uses) 8,248,041 (3,964,393) (52,459) - Net Change in Fund Balances 2,159 6,388 (34,124) 14,101 Fund Balances -Beginning 9,098,935 - 1,308,730 171,716 Fund Balances -Ending $ 9,101,094 $ 6,388 $ 1,274,606 $ 185,817 The accompanying Notes to Financial Statements are an integral part of these statements. 23 Other Total Governmental Governmental Funds Funds $ 217,872 $ 7,130,088 - 3,975,766 - 139, 726 1, 868,194 1, 944,662 895, 708 7,110,672 2,878,731 3,440,809 86, 569 318, 558 2,075,226 2,130,708 215, 783 521,176 66,070 175,446 8, 304,153 26, 887,611 13,469 6,045,558 501, 755 10,671,175 3,118,601 4,266,363 15,480 2,162,655 812,092 967,407 546,553 665,217 313,915 482,467 81,927 231,888 1,036,818 3,758,198 251.763 267.568 o,oy~,~i~ ~y,~io,~+yo 1,611,780 (2,630,885) 2,266,078 10,620,458 (4,308,495) (8,431,686) 750, 000 750, 000 (1,292,417) 2,938,772 319, 363 307, 887 9,871,315 20,450,696 $10,190,678 $20,758,583 24 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended September 30, 2008 Amounts reported for the governmental activities in the statement of activities (page 20) are different because: Net change in fund balances -total governmental funds (page 24) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and disposals) is to decrease net assets. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds. Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Change in net assets of governmental activities (page 20) $ 307,887 2,147,633 (519,624) 217,407 (829,746) (86,719) (423,298) $ 813,540 The accompanying Notes to Financial Statements are an integral part of these statements. 25 CITY OF WINTER SPRINGS, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Budgeted Amounts Original Final Revenues: Taxes: Property taxes Business tax receipts Permits and fees: Permits Franchise fees Intergovernmental revenues: Sales tax State revenue sharing Other state shared revenue Federal grants Charges for services: Concession stand receipts Program activity fees Rental and other Fines and forfeitures Investment income Miscellaneous Total revenues Variance With Final Budget- Actual Positive Amounts (Negative) $ 6,929,600 $ 6,929,600 $ 6,912,216 $ (17,384) 175,000 175,000 139,726 (35,274) 7,104,600 7,104,600 7,051,942 (52,658) 40,000 40,000 36,778 (3,222) 50, 000 50, 000 39, 690 (10, 310) 90,000 90,000 76,468 (13,532) 2,542,049 2,357,604 2,260,794 (96,810) 1,167,113 1,092,860 1,021,197 (71,663) 50,000 50,000 49,299 (701) - 129,260 144,524 15,264 3,759,162 3,629,724 3,475,814 (153,910) 85,000 85,000 39,678 (45,322) 186,100 168,100 181, 950 13, 850 300,250 273,250 340,450 67,200 571, 350 526, 350 562, 078 35, 728 213, 000 213, 000 231, 989 18, 989 405, 000 325, 000 185, 879 (139,121) 42, 500 93, 326 98, 525 5,199 12,185,612 11, 982, 000 11,682,695 (299, 305) The accompanying Notes to Financial Statements are an integral part of these statements. 26 Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Expenditures: Current: General government: Executive $ 728,270 $ 729,932 $ 700,480 $ 29,452 General government 478,300 745,732 734,640 11,092 Finance 1,159,863 1,166,113 1, 035,096 131, 017 General services 1,228,271 1,232,484 1,047,624 184,860 Information systems 1,115,080 1,224,140 1,001,152 222,988 Community development 1,727,060 1,749,200 1,676,664 72,536 6,436,844 6,847,601 6,195,656 651,945 Public safety: Police 6,599,347 6,716,862 6,714,435 2,427 Fire 4,718,013 4,339,168 3,726,433 612,735 11,317,360 11,056,030 10,440,868 615,162 Physical environment: Public works 1,266,040 1,267,431 1,129,073 138, 358 Culture and recreation: Parks and recreation 2,522,464 2,343,233 2,162,980 180,253 Total expenditures 21,542,708 21,514,295 19,928,577 1,585,718 Deficiency of Revenues Over Expenditures (9,357,096) (9,532,295) (8,245,882) 1,286,413 Other Financing Sources (Uses) Transfers in 9,797,289 8,566,184 8,354,380 (211,804) Transfers out (109,698) (103,286) (106,339) (3,053) Net other financing sources 9,687,591 8,462,898 8,248,041 (214,857) Net Change in Fund Balance 330,495 (1,069,397) 2,159 1,071,556 Fund Balances -Beginning 9,098,935 9,098,935 9,098,935 - Fund Balances -Ending $ 9,429,430 $ 8,029,538 $ 9,101,094 $ 1,071,556 27 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA PUBLIC & COMMUNICATIONS SERVICE TAX SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Taxes: Utility taxes Total revenues Expenditures: Current: General government Total expenditures Excess of Revenues Over Expenditures Other Financing Uses Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 3,991,485 $ 3,969,378 $ 3,975,766 $ 6,388 3,991,485 3,969,378 3,975,766 6,388 - 4,985 4,985 4,985 4,985 (3,991,485) (3,964,393) (3,964,393) (3,991,485) (3,964,393) (3,964,393) - - 6,388 $ - $ 6,388 6,388 - $ 6,388 $ 6,388 The accompanying Notes to Financial Statements are an integral part of these statements. 28 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENTS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Intergovernmental revenues Investment income Total revenues Expenditures: Current: Physical environment Capital outlay: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Actual Original Final Amounts $ 4,100,000 $ - $ 2,739,150 20, 000 20, 000 15,192 4,120,000 20,000 2,754,342 Variance with Final Budget- Positive (Negative) $ 2,739,150 (4,808) 2, 734, 342 - 1,000 14,627 (13,627) 4,375,000 2,751,600 2,721,380 30,220 4,375,000 2,752,600 2,736,007 16,593 (255,000) (2,732,600) 18,335 2,750,935 (52,459) (52,459) (52,459) (52,459) (52,459) (52,459) (307,459) (2,785,059) (34,124) 2,750,935 1,308,730 1,308,730 1,308,730 $ 1,001,271 $ (1,476,329) $ 1,274,606 $ 2,750,935 The accompanying Notes to Financial Statements are an integral part of these statements. 29 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS September 30, 2008 Assets Current assets: Cash and cash equivalents Receivables, net Inventories Restricted cash and cash equivalents Total current assets Noncurrent assets: Restricted investments Bond issuance costs Capital assets: Land, buildings and equipment Construction in progress Less accumulated depreciation Total capital assets (net of accumulated depreciation) Total noncurrent assets Total assets Business-type Activities -Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility C...,.+ C...,.+ C...,.+ T.,+.~I $ 5,462,858 $ 708,498 $ 920,607 $ 7,091,963 1,005,633 - - 1,005,633 20,258 - - 20,258 1,448,166 - - 1,448,166 7,936,915 708,498 920,607 9,566,020 2,048,104 - - 2,048,104 318,524 - - 318,524 51,776,395 133,202 6,780,080 58,689,677 436,823 - - 436,823 (22,122,067) (112,408) (3,093,707) (25,328,182) 30,091,151 20,794 3,686,373 33,798,318 32,457,779 20,794 3,686,373 36,164,946 40,394,694 729,292 4,606,980 45,730,966 The accompanying Notes to Financial Statements are an integral part of these statements. 30 Liabilities Current liabilities: Accounts payable Accrued liabilities Retainage payable Compensated absences Customer deposits payable Revenue bonds payable -current Accrued interest payable Total current liabilities Noncurrent liabilities: Revenue bonds payable Accreted interest payable Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for: Debt service Renewal and replacement Physical environment Unrestricted Total net assets Business-type Activities -Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total $ 374,465 $ 7,302 $ 62,608 $ 444,375 87,345 10,447 18,003 115,795 15,381 - - 15,381 153,047 13,993 15,581 182,621 704,368 - - 704,368 980,000 - - 980,000 438,798 - - 438,798 2,753,404 31,742 96,192 2,881,338 20,125,924 - - 20,125,924 2,082,305 - - 2,082,305 22,208,229 - - 22,208,229 24,961,633 31,742 96,192 25,089,567 8,985,227 20,794 3,686,373 12,692,394 2,048,104 - - 2,048,104 718,942 - - 718,942 47,402 - - 47,402 3,633,386 676,756 824,415 5,134,557 $ 15,433,061 $ 697,550 $ 4,510,788 $ 20,641,399 31 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS -PROPRIETARY FUNDS For The Year Ended September 30, 2008 Business-type Activities - Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Operating Revenues: User charges $ 7,251,637 $ 573,010 $ 1,042,096 $ 8,866,743 Other revenue - 146 32,157 32,303 Total operating revenues 7,251,637 573,156 1,074,253 8,899,046 Operating Expenses: Salaries and benefits 2,275,547 374,807 440,612 3,090,966 Materials and supplies 890,820 4,578 288,155 1,183,553 Depreciation and amortization 1,613,614 16,688 224,753 1,855,055 Other operating expenses 1,086,566 291,425 86,174 1,464,165 Total operating expenses 5,866,547 687,498 1,039,694 7,593,739 Operating income 1,385,090 (114,342) 34,559 1,305,307 Nonoperating Revenue (Expenses): Investment income 154,410 17,767 13,248 185,425 Interest expense (949,995) - - (949,995) Accreted interest expense (334,299) - - (334,299) Proceeds from auction and insurance 12,477 - - 12,477 Gain (loss) on disposal of capital assets - (94) - (94) Total nonoperating revenue (expense) (1,117,407) 17,673 13,248 (1,086,486) Income before contributions and transfers 267,683 (96,669) 47,807 218,821 Capital contributions: Connection fees 39,060 - - 39,060 Developers 184,798 - - 184,798 Transfers in 9,053 24,431 55,064 88,548 Transfers out (1,412,239) (604,986) (260,095) (2,277,320) Change in net assets (911,645) (677,224) (157,224) (1,746,093) Total Net Assets-Beginning 18,092,712 1,374,774 4,668,012 24,135,498 Prior Period Adjustment (1,748,006) - - (1,748,006) Total Net Assets -End $ 15,433,061 $ 697,550 $ 4,510,788 $ 20,641,399 The accompanying Notes to Financial Statements are an integral part of these statements. 32 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2008 Cash Flows from Operating Activities: Business-type Activities -Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Receipts from customers $ 7,477,996 $ 573,156 $ 1,074,253 $ 9,125,405 Payments to suppliers (1,904,242) (290,501) (395,559) (2,590,302) Payments to employees (2,307,700) (372,691) (438,894) (3,119,285) Net cash provided by operating activities 3,266,054 (90,036) 239,800 3,415,818 Cash Flows from Non-Capital Financing Activities: Transfers in 9,053 24,431 55,064 88,548 Transfers out (1,412,239) (604,986) (260,095) (2,277,320) Net cash used by non-capital financing activities (1,403,186) (580,555) (205,031) (2,188,772) Cash Flows from Capital and Related Financing Activities: Proceeds from sale of capital assets 5,753 146 999 6,898 Proceeds from insurance 6,724 - - 6,724 Acquisition of capital assets (628,479) (2,656) (147,302) (778,437) Principal paid on revenue bonds & leases (945,000) - - (945,000) Interest paid on revenue bonds (909,660) - - (909,660) Connection fees 39,060 - - 39,060 Net cash used by capital and related financing activities (2,431,602) (2,510) (146,303) (2,580,415) Cash Flows from Investing Activities: Sale of investments 88,927 11,848 7,183 107,958 Investment income 81,886 5,919 6,065 93,870 Net cash provided by investing activities 170,813 17,767 13,248 201,828 Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents -Beginning Cash and Cash Equivalents -End Classified As: Cash and cash equivalents Restricted cash Total (397,921) (655,334) (98,286) (1,151,541) 7,308,945 1,363,832 1,018,893 9,691,670 $ 6,911,024 $ 708,498 $ 920,607 $ 8,540,129 $ 5,462,858 $ 708,498 $ 920,607 $ 7,091,963 1,448,166 - - 1,448,166 $ 6,911,024 $ 708,498 $ 920,607 $ 8,540,129 The accompanying Notes to Financial Statements are an integral part of these statements. 33 Business-type Activities -Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Reconciliation of Operating Income to Net Cash Provided By Operating Activities Operating income Adjustments Not Affecting Cash: Depreciation Amortization Change in Assets and Liabilities: Decrease in accounts receivable Increase in inventories Decrease in prepaid costs Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Decrease in retainage payable Decrease in customer deposits Increase (decrease) in accrued compensated absences Total adjustments Net Cash Provided (Used) By Operating $ 1,385,090 $ (114,342) $ 34,559 $ 1,305,307 1,593,085 16,688 224,753 1,834,526 20,529 - - 20,529 257,302 - - 257,302 (3,802) - - (3,802) 18,700 4,300 4,300 27,300 73,566 1,202 (25,530) 49,238 (46,167) 2,079 2,674 (41,414) (15,320) - - (15,320) (30,943) - - (30,943) 14,014 37 (956) 13,095 1,880,964 24,306 205,241 2,110,511 Activities $ 3,266,054 $ (90,036) $ 239,800 $ 3,415,818 Noncash Investing, Capital and Financing Activities: Contributed capital assets $ 184,798 $ - $ - $ 184,798 Decrease in fair value of investments 72,524 11,848 7,183 91,555 34 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS September 30, 2008 Defined Benefit Pension Trust Fund Assets: Cash and cash equivalents $ 675,224 Receivables: Plan members contributions 81,732 Investments, at fair value: Common funds -equity 9,701,005 Common funds -bonds 5,164,518 Total investments 14,865,523 Total assets 15,622,479 Liabilities Net Assets: Held intrust for pension benefits $ 15,622,479 The accompanying Notes to Financial Statements are an integral part of these statements. 35 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2008 Defined Benefit Pension Trust Fund Additions: Contributions: Employer $ 1,663,951 Plan members 365,288 Total contributions 2,029,239 Investment income (loss): Net decline in fair value of investments (3,254,961) Interest 255,946 Net investment loss (2,999,015) Total additions (969,776) Deductions: Benefits 384,482 Administrative expenses 70,423 Total deductions 454,905 Change in Net Assets (1,424,681) Net Assets -Beginning 17,047,160 Net Assets -End $ 15,622,479 The accompanying Notes to Financial Statements are an integral part of these statements. 36 This page intentionally left blank. NOTES TO FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies: A. Reporting Entity The City of Winter Springs, Florida (the City) is a political subdivision of the state of Florida located in Seminole County, and was established by the Laws of Florida 59-1614. The legislative branch of the City is comprised of afive-member elected Commission and a separately elected mayor, which 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. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. (The remainder of this page intentionally left blank.) 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 38 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The government reports the following funds: Major Governmental Funds The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Public and Communications Service Tax Special Revenue Fund accounts for collections of utility taxes charged on electric, water and gas services as well as telecommunications service taxes. Proceeds are used to pay annual debt service and monies not required to pay debt service are transferred to the general fund. The Road Improvements Special Revenue Fund accounts for collected one-cent sales tax revenues to be used for transportation-related improvements. The TLBD Debt Service Fund was established to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue. 39 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Non-Major Governmental Fund Types Special Revenue Funds account for specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes. Debt Service Funds account for the accumulation of resources for, and the payment of principal and interest on certain long-term debt. Capital Projects Funds account for financial resources segregated for the acquisition or construction of major capital facilities. Major Proprietary Funds The Water and Sewer Utility Fund is used to account for the operations of the City's water and wastewater systems, which are financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. The Development Services Fund is used to account for the operations of the City's building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. The Stormwater Utility Fund is used to account for the City's operation and maintenance of the stormwater system, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. Fiduciary Fund The Pension Trust Fund accounts for contributions to the defined benefit plan. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. 40 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) As a general rule the effect of interfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are other charges between the City's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, sewer and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Investments of the City are reported at fair value. The City's investments consist of investments authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes. 41 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. 3. Inventories and Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 42 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government- wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 30 Improvements 20-50 Infrastructure 30-50 Equipment 3-10 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 1 -Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the government does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences are generally liquidated by the General Fund. 7. Long-term obligations In the government-wide financial statements, and for proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts (including deep-discount or capital appreciation bonds), as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 44 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 2 -Prior Period Adjustment Beginning net assets in the Water and Sewer Utility Fund have been adjusted for the effects of Capital Appreciation Bonds where accreted interest was not expensed in prior years. As a result, prior year (fiscal year 2001 to fiscal year 2007) total nonoperating revenue was overstated by $1,748,006. In fiscal year 2008, accreted interest expense of $334,299 was recorded. Beginning long-term liabilities for governmental activities has been adjusted for the effects of Capital Appreciation Bonds where accreted interest was not recorded in prior years. As a result, prior year long-term liabilities (fiscal year 2000 to fiscal year 2007) were understated by $1,872,337. In fiscal year 2008, accreted interest of $307,556 was recorded. Note 3 -Reconciliation of Government-Wide and Fund Financial Statements: A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net assets -governmental activities as reported in the government- wide statement of net assets. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this ($23,145,598) difference are as follows: Bonds payable Less: Issuance discount (to be amortized as interest expense) Add: Issuance premium (to be amortized as interest expense) Less: Deferred charge on refunding (to be amortized as interest expense) Accreted interest payable Notes payable Capital lease payable Accrued interest payable Compensated absences Net adjustment to reduce fund balance -total governmental funds to arrive at net assets -governmental activities $(18,223,970) 17, 748 (69,638) 109,510 (2,179,893) (1,410,787) (227, 786) (261, 039) (899, 743) (23.145.5981 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 3 -Reconciliation of Government-Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities (Continued) The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances -total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $2,147,633 difference are as follows: Capital outlay $ 4,710,632 Depreciation expense (2,562,999) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 2,147,633 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities." The details of this $217,407 difference are as follows: Debt issued or incurred: Capital leases and loan Principal repayment Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes in net assets of governmental activities $ (750,000) 967,407 $ 217,407 46 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 3 -Reconciliation of Government-Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities (Continued) Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($423,298) difference are as follows: Compensated Absences Amortization of issuance costs Amortization of bond discounts Accrued interest payable Accreted interest payable Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities Note 4 -Stewardship, Compliance, and Accountability: A. Budgetary Information $ (108,731) (14,984) (4, 747) 12,720 (307, 556) (423.2981 Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. On or before July 1St of each year, the City Manager submits a Proposed Budget to the City Commission for the fiscal year beginning the following October 1St. The budget includes proposed revenues, expenditures and a description of capital activities for the ensuing fiscal year. 2. The City Commission then holds informal workshops, wherein the public is invited to attend. 3. On or before September 30th of each year, two public hearings are completed and the Commission establishes the ad valorem tax millage followed by the adoption of the final budget. 4. The budget may be formally amended by the City Commission at any time. Budgeted amounts presented in the accompanying financial statements have been adjusted for any legally authorized revisions of the annual budgets during the year. 47 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 4 -Stewardship, Compliance, and Accountability (continued): A. Budgetary Information (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 appropriations among programs within one department. The legal level of budgetary control is the departmental level. B. Appropriations in Excess of Funds Available Appropriations for the Road Improvements Special Revenue Fund and the Hazard Mitigation Capital Projects Fund were in excess of anticipated revenue and prior years fund balance. Note 5 -Deposits and Investments: Deposits At year-end, the carrying amount of the City's deposits was $3,170,896 and the bank balance was $1,641,816. Petty cash funds of $1,965 are not on deposit with a financial institution, and fiduciary fund cash of $675,224 held by the pension fund is not in the City's bank. All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to "authorized depositories". Investments: General Operating Funds The City's investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LGI P) 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. Interest bearing time deposit or savings accounts 6. Repurchase agreements 7. Commercial paper 8. Bankers' acceptances 9. State and/or local government taxable and/ortax-exempt debt 10. Registered investment companies (money market mutual funds) 11. Intergovernmental investment pool 48 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: General Operating Funds (continued) The City's investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poor's (S & P) rating of AAm or AAm-G. Investments in commercial paper and bankers' acceptances must be rated, at a minimum, "P-1" by Moody's Investors Services and "A-1" by S & P. Investment in state and/or local government taxable and/or tax-exempt debt must be rated at least "Aa" by Moody's and "AA" by S & P for long-term debt, or rated at least "MIG-2" by Moody's and "SP-2" by S & P for short-term debt. Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The city's investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2008, all of the city's bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2008, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. As discussed in the paragraphs below, on September 30, 2008, the City's investments were contained in two investments -the State Board of Administration Local Government Investment Pool ("Pool") and The Reserve - US Treasury Institutional Class Money Market Mutual Fund due to the freeze on the Pool on November 29, 2007. 49 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: General Operating Funds (continued) Interest Rate Risk The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to a maximum length to maturity of five years. The maximum length to maturity for an investment in any state or local government debt security is three years. Certificates of deposit maximum maturity is one year and commercial paper and bankers' acceptances are 180 days. The maximum length to maturity for repurchase agreements is 90 days. As discussed in the paragraphs below, on September 30, 2008, the City's investments were contained in two investments -the State Board of Administration Local Government Investment Pool ("Pool") and The Reserve - US Treasury Institutional Class Money Market Mutual Fund due to the freeze on the Pool on November 29, 2007. As noted in the fiscal year ended September 30, 2007 Note 15: Subsequent Events, the City had funds invested in the State Board of Administration Local Government Investment Pool ("Pool") which is administered by the State of Florida. On November 29, 2007, the State Board of Administration (SBA) implemented a temporary freeze on the assets held in the Pool due to an unprecedented amount of withdrawals from the Fund coupled with the absence of market liquidity for certain securities within the Pool. The significant amount of withdrawals followed reports that the Pool held asset-backed commercial paper that was subject to sub-prime mortgage risk. Additional Investment Information On December 4, 2007, based on recommendations from an outside financial advisor, BlackRock Financial Management, Inc., the State Board of Administration restructured the Pool into two separate pools. Pool A consisted of all money market appropriate assets, which was approximately $12 billion or 86% of Pool assets. Pool B consisted of assets that either: defaulted on a payment, paid more slowly than expected, and/or had any significant credit and liquidity risk, which was approximately $2 billion or 14% of Pool assets. At the time of the restructuring, all current pool participants had their existing balances proportionately allocated into Pool A and Pool B. Special meetings were held by the City on November 29, December 5 and December 6, 2007 to notify the Commission and discuss the SBA situation. The Commission authorized the withdrawal of the 15% available fund balance in SBA Pool A immediately and for staff to continue monitoring and providing information on the SBA and the City's surplus funds as information became available. 50 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: General Operating Funds (continued) Additional Investment Information (continued) On December 10, 2007 the Commission issued an additional directive for the City Manager to work with The Bogdahn Group to invest the City's available surplus funds in an investment vehicle that contained 100% US Treasury securities. The Reserve - US Treasury Fund Institutional Class - a money market mutual fund that invests 100% in US Treasury bills -was recommended. As frozen Pool A funds became available, they were withdrawn and invested in The Reserve - US Treasury Fund Institutional Class. As of September 30, 2008, Pool A participants have been allowed to withdraw 65% of their original balance without penalty. Withdrawals from Pool A in excess of the above limit were subject to a 2% redemption fee. New investments in Pool A are not subject to the redemption fee or withdrawal restrictions. Future withdrawal provisions from Pool A will be subject to further evaluation based on the maturities of existing investments and the liquidity requirements of the Pool. The SBA's intent is to have Pool A fully liquidated by December 31, 2008. Pool A is now referred to as the Local Government Investment Pool (LGIP). Investments held in the LGIP consist of corporate notes, repurchase agreements, certificates of deposit and money market mutual funds. These short-term investments are included as cash equivalents and are stated at cost, which approximates fair value. Currently, Pool B participants are prohibited from withdrawing any amount from the Pool and a formal withdrawal policy has not yet been developed. Market valuations of the assets held in Pool B are not readily available. In addition, full realization of the principle value of Pool B assets is not readily determinable. Pool B is now referred to as Fund B Surplus Funds Trust Fund (Fund B). At September 30, 2008, SBA Fund B held the following investments: KKR Atlantic and KKR Pacific (now called Florida East Funding LLC and Florida West Funding LLC); Ottimo (now called Issuer Entity LLC); and Axon Financial Funding LLC. Investments held in the SBA Fund B consist of corporate notes, commercial paper and money market mutual funds. These investments are accounted for as a fluctuating net asset value pool with a fair value factor at September 30, 2008 of 0.798385. A decrease in market value of $253,992 has been booked in fiscal year 2008 for this unrealized decline in fair market value. Additional information regarding the Local Government Surplus Funds Trust Funds may be obtained from the State Board of Administration at www.sbafla.com/pool. 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: General Operating Funds (continued) Additional Investment Information (continued) The Reserve family of funds includes the US Treasury Fund, the Primary Fund and US Government Fund. On September 16, 2008, The Reserve's Board of Trustees approved the valuing debt securities held by the Primary Fund and issued by Lehman Brothers Holdings Inc to be zero (face value of $785 million). This resulted in the net asset value (NAV) of the Primary fund to be reduced from $1.00 per share to $0.97 per share. The NAV of the US Treasury Fund remained unchanged at $1.00 per share. The redemption timeframe did increase from the current practice of one calendar day to seven calendar days. As of September 30, 2008, the Investment Policy as described in the beginning of this note had been temporarily amended by the Commission with December 10th's directive to place 100% of funds into a money market mutual fund that invests 100% in US Treasury bills until an Investment Advisor could be engaged. Please see Note 16: Subsequent Events for additional information regarding investments regarding the State Board of Administration and The Reserve investment accounts as well as an Investment Advisor. Investments held by the City at September 30, 2008 are detailed below. Decrease Weighted Weighted in Average Credit Average Investments Cost Fair Value Fair Value Yield Rating Maturity SBA Fund B 1 $1,224,252 ($246,828) $977,424 0.00% Unrated 9.36 years SBA Fund B 2 35,531 (7,164) 28,367 0.00 Unrated 9.36 years SBA LGIP 1 6,722,820 - 6,722,820 3.20 AAAm"" 8.5 days SBA LGIP 2 526 - 526 2.81 AAAm"" 8.5 days The Reserve - US Treasury MM 1 17,184,479 - 17,184,479 1.44 Unavailable^^ Unavailable^^ The Reserve - US Treasury MM 2 714,827 - 714,827 1.48 Unavailable^^ Unavailable^^ Columbia - US Treasury MM 3 1,304,384 - 1,304,384 2.03 AAAm"" 1 day $27,186, 819 ($253, 992) $26, 932, 827 MM -Money Market Mutual Funds ""Standard and Poor's rating ^"Credit rating and Weighted Average Maturity information on The Reserve - US Treasury Fund is unavailable as the fund is now closed and information no longer maintained in Bloomberg Financial System. "1" General Pooled Investments "2" Series 2000 Water & Sewer Refunding Revenue Bonds "3" Series 2002 Water & Sewer Refunding Revenue Bonds 52 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: Pension Funds The City's Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Interest bearing time deposit or savings accounts 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. State of Florida Local Government Surplus Fund (SBA) 6. Commercial paper 7. Bankers' acceptances 8. State and/or local government taxable and/ortax-exempt debt 9. Intergovernmental investment pool 10. Common and preferred stocks, commingled funds, mutual funds, bonds and structured mortgage or asset backed securities 11. Real Estate and real estate securities 12. Repurchase agreements 13. Foreign securities 14. Registered investment companies (money market mutual funds) The investments held by the City's Pension Trust Fund at September 30, 2008 are detailed below: Investment Type Fair Value Weighted Average Maturity (Years) Stocks Bonds Real Estate and Real Estate Securities Foreign Securities Total Investments Cash and Cash Equivalents Total Cash and Investments $6,966,827 5,164,518 988,362 1,745,816 14,865,523 675,224 $15,540,747 N/A 6.2 N/A N/A 53 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: Pension Funds (continued): Credit Risk The City's Trust investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investments in: federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backing commercial paper, the long-term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers' acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and/or Revenue Bonds of state or local government taxable or tax-exempt debt be rated A, for long-term debt, by a nationally recognized rating service or rated "MIG-2" or "SP-2", for short term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of "A1" by Standard & Poor's (S&P) or "P1" by Moody's Investor Services (Moody's); fixed income securities be investment grade as measured by S&P or Moody's; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2008, none of the Trust investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's Trust investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. The policy limits an individual issuer of common or capital stock to no more than 5% of the fund's assets; the aggregate investment in any one stock issuing company to no more than 5% of the outstanding capital stock of the company; and the value of bonds issued by any single corporation to no more than 3% of the total fund. The policy limits investments in corporate common stock and convertible bonds to no more than 75% of the fund assets at market value; foreign securities to no more than 20% of fund assets at market value; and alternative investments, such as timber and real estate, to no more than 15% of the fund assets at market value. At September 30, 2008, no security investments in the Trust were over their respective limitations. 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 5 -Deposits and Investments (continued): Investments: Pension Funds (continued): Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, as long as the average duration of the portfolio will not exceed +/- 125% of the duration of the Policy benchmark. There were no security level fixed income investments in the Pension Portfolio. The duration of the commingle fund investment was 3.41 years, the duration of the policy index was 2.64 years. The longest term to maturity of securities held (within the commingle fund) were as follows: Government-10 yrs., State and Local Government-22 yrs., Longest overall bond maturity- perpetual 88 yrs. Note 6 -Receivables: Receivables as of year end for the City's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance Accounts Uncollectible Net Funds Receivable Accounts Receivable General $177,991 $ - $177,991 Public & Communications Service Tax Special Revenue 142,129 - 142,129 Road Improvements Special Revenue 5,225,931 - 5,225,931 TLBD Debt Service 1,560 - 1,560 Water & Sewer Utility 1,151,291 (145,658) 1,005,633 Nonmajor Governmental 572,677 36( 7,000) 205,677 $7,271,579 512 658 $6,758,921 There is an amount of $2,499,306 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,761,706 and transportation impact fee receivable of $380,081 that are not available to liquidate liabilities of the current period. These receivables totaling $5,641,093 are reported as deferred revenue in the governmental funds balance sheet. 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 7 -Capital Assets: Capital asset activity for the year ended September 30, 2008 was as follows: Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements Machinery and equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings Improvements Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Ending Balance Increases Decreases Balance $9,848,716 $ - $ - $9,848,716 5,178,465 4,451,059 (8,101,494) $1,528,030 15,027,181 4,451,059 (8,101,494) 11,376,746 10,214,961 1,928,979 - 12,143,940 11,205,679 151,431 (820) 11,356,290 8,770,945 543,094 (2,327,313) 6,986,726 45,706,170 5,737,563 - 51,443,733 75,897,755 8,361,067 (2,328,133) 81,930,689 (2,664,877) (342,244) - (3,007,121) (2,620,520) (384,407) 14 (3,004,913) (6,042,058) (870,462) 1,808,495 (5,104,025) (22,050,175) (965,886) - (23,016,061) (33,377,630) (2,562,999) 1,808,509 (34,132,120) 42,520,125 5,798,068 (519,624) 47,798,569 $57,547,306 $10,249,127 ($8,621,118) $59,175,315 56 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 7 -Capital Assets (Continued): Business-type activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements Machinery and equipment Total capital assets, being depreciated Less accumulated depreciation for Beginning Ending Balance Increases Decreases Balance $5,344,916 $ - $ - $5,344,916 484,815 502,354 (550,346) 436,823 5,829,731 502,354 (550,346) 5,781,739 759,515 - - 759,515 48,198,221 750,103 - 48,948,324 3,395,556 280,160 (38,795) 3,636,921 52,353,292 1,030,263 (38,795) 53,344,760 Buildings (419,314) (25,433) - (444,747) Improvements (20,562,252) (1,584,045) - (22,146,297) Machinery and equipment (2,530,609) (245,645) 39,116 (2,737,138) Total accumulated depreciation (23,512,175) (1,855,123) 39,116 (25,328,182) Total capital assets, being depreciated, net 28,841,117 (824,860) 321 28,016,578 Business-type activities capital assets, net $34,670,848 ($322,506) ($550,025) $33,798,317 Depreciation expense was charged to functions/programs as follows: Governmental activities General government $208,265 Public safety 532,432 Physical environment 1,401,605 Culture and recreation 420,697 Total depreciation expense -governmental activities $2,562,999 Business-type activities: Water and sewer $1,593,085 Development services 16,688 Stormwater 224,753 Total depreciation expense -business-type activities $1,834,526 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 7 -Capital Assets (Continued): For the business-type activities, total depreciation expense does not equal accumulated depreciation due to asset transfers from the general fund to the stormwater utility fund. Note 8 -Leases: Capital Leases -The City has entered into lease agreements as lessee for financing the acquisition of several police vehicles. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. Included in the capitalized amount is $36,528 of modifications to the leased vehicles in order to make them operational for police purposes. The assets acquired through capital leases are as follows: Governmental Assets - Activities Machinery & equipment $477,996 Less: accumulated depreciation 17( 9,877) Total 298 119 The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2008 were as follows: Governmental Activities Year Ending September 30, 2009 $121,488 2010 121,487 Total minimum lease payments 242,975 Less: Amount representing interest 1( 5,189) Net present value 227 786 Note 9 -Long-Term Debt: Revenue Bonds The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business-type activities. The original amount of revenue bonds issued in prior years is described below. The Special Assessment Revenue Bonds issued in 2001 are payable from and secured by a first lien and pledge of assessments levied on property within the assessed area as well as the first $160,000 of half-cent sales tax received by the City each year. In the event that a deficiency exists because of unpaid or delinquent special assessments at the time a debt service payment is due, the government must provide resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. Revenue bonds outstanding at year end are as follows: 58 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 9 -Long-Term Debt (Continued): Revenue Bonds (Continued) Revenue bonds outstanding at year end are as follows: Interest Balance Rates and Original September 30, Dates Maturity Amount 2008 Governmental Activities Improvement Refunding Revenue Bonds -Series 1999 10/1/1999 (excludes $2,179,893 of accreted 3.25 - 5.25% to interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2029 $7,998,970 $5,188,970 10/1 /2002 Special Assessment 3.4 - 5.25% to Revenue Bonds -Series 2001 (4/1 & 10/1) 10/1/2029 $2,265,000 1,990,000 10/1 /2004 Improvement Refunding 2.0 - 3.7% to Revenue Bonds -Series 2003 (4/1 & 10/1) 10/1/2018 $8,870,000 8,045,000 Total $15,223,970 Business-Type Activities Water and Sewer Refunding Revenue Bonds -Series 2000 10/1/2002 (excludes $2,082,305 of accreted 4.5 - 5.5% to interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2030 $6.969,191 $6,724,191 10/1 /2002 Water and Sewer Refunding 4.0 - 5.0% to Revenue Bonds -Series 2001 (4/1 & 10/1) 10/1/2021 $6,065,000 4,755,000 10/1 /2003 Water and Sewer Refunding 3.0 - 5.25% to Revenue Bonds -Series 2002 (4/1 & 10/1) 10/1/2020 $13,980,000 Total 59 10,405,000 $21,884,191 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 9 -Long-Term Debt (Continued): Revenue Bonds (Continued) Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Governmental Activities Business-Ty pe Activities September 30, Principal Interest Principal Interest 2009 $ 735,000 $ 437,533 $ 980,000 $ 851,523 2010 775,000 415,311 1,015,000 810,217 2011 810,000 389,968 1,060,000 765,648 2012 860,000 361,974 1,105,000 718,017 2013 900, 000 331,135 1,160, 000 666, 539 2014-2018 5,200,000 1,097,844 6,710,000 2,395,857 2019-2023 3,099,335 4,352,689 5,105,135 4,455,234 2024-2028 2,076,193 5,091,186 2,173,125 7,847,645 2029-2031 768,442 1,568,394 2,575,931 1,741,106 $15,223,970 $14,046,034 $21,884,191 $20,251,786 General Obligation Bonds During 2003, the City issued limited general obligation bonds for the acquisition of property to expand Central Winds Park. These bonds are payable from and secured by a pledge of the faith, credit and taxing power of the City, provided that the levy of ad valorem taxes by the City in each year for the payment of debt service on the Series 2003 Bonds shall not exceed one quarter (1/4) of one mil on all of the taxable property in the City. General obligation bonds currently outstanding are as follows: Interest Balance Rates and Original September Dates Maturity Amount 30, 2008 Governmental Activities Limited General Obligation 2.0 - 5.375% 7/1/03 - Bonds -Series 2002 (1/1 & 7/1) 7/1/31 $3,400,000 $3,000,000 60 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 9 -Long-Term Debt (Continued): General Obligation Bonds (Continued) Annual debt service requirements to maturity for the general obligation bonds are as follows: Year Ending Governmental Activities September 30, Principal Interest 2009 $ 75,000 $ 148,433 2010 75, 000 145, 508 2011 80,000 142,508 2012 85,000 139,208 2013 85,000 135,638 2013-2017 505,000 604,675 2018-2022 655,000 461,250 2023-2027 835,000 280,730 2028-2031 605.000 61.270 $3,000,000 $2,119,220 Material Events Continuing Disclosure During fiscal year 2008, the bond insurers who insure the City's outstanding bond issues suffered rating downgrades resulting in an equivalent downgrade of the insured rating on the City's bonds. The City's own rating did not change during fiscal year 2008. The City as required by Securities and Exchange Commission Rule 15c-12 provided the appropriate notices of such bond insurer rating downgrades to the Nationally Recognized Municipal Securities Information Repositories through the Municipal Advisory Council of Texas. Fitch, Moody's and Standard and Poor's may be contacted for further information regarding these downgrades. See Note 16: Subsequent Events for further downgrade information. Notes Payable The City issued the 2004 Capital Improvement Revenue Note for an amount not to exceed $2,500,000. Advances on this note during fiscal year 2004 were $600,000 was repaid during fiscal year 2004. An advance of $750,000 occurred in fiscal year 2008 for the construction of the Senior Center Expansion and Therapy Pool project. No additional advances were eligible for withdrawal after February 28, 2008. The City issued the Capital Improvement Revenue Note, Series 2004A, in the amount of $575,907 for the purpose of refinancing the Capital Improvement Revenue Note, Series 2000B, in the amount of $495,907 and to finance $80,000 cost of completing construction of additional landscaping and irrigation along the Oak Forest subdivision wall. The City covenants to designate payments received from Oak Forest special assessments to pay debt service on this note. 61 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 9 -Long-Term Debt (Continued): Notes Payable (Continued) The City issued a Special Assessment Revenue Note Series 2006, in the amount of $430,000 to provide financing for the Tuscawilla Lighting and Beautification Project, Phase II. The City paid off $606 of this with prepaid assessments during the year ended September 30, 2008. Notes payable outstanding at year end are as follows: Capital Improvement Revenue Note, Series 2004A -Interest only payable each June 1 and December 1 until July 1, 2010 when entire balance is due. Note anticipated to be rolled into a new debt instrument at that time. Interest is 4.22%. Principal payments of $33,810 were made in fiscal year 2008. Special Assessment Revenue Note, Series 2006 -Principal payable annually beginning July 1, 2007 and interest payable semi-annually on January 1 and July 1. Maturity is July 1, 2021 and interest is 4.10%. Principal payments of $28,200 were made in fiscal year 2008. 2004 Capital Improvement Revenue Note -Interest only payable each June 1 and December 1. Interest is variable, tied to LIBOR, and was 2.53% at September 30, 2008. Maturity is June 1, 2027. Anticipated payoff in June 2023. Principal payments of $30,082 were made in fiscal year 2008. $405,169 285, 700 719,918 $1,410,787 Annual debt service requirements to maturity for notes payable are as follows: Year Ending Governmental Activities September 30, Principal Interest 2009 $ 18,191 $ 47,158 2010 424,105 47,827 2011 19,711 28,517 2012 20,518 27,698 2013 21, 358 26, 845 2014-2018 120,650 120,157 2019-2023 66,336 95,757 2024-2027 719,918 72,739 $ 1,410,787 466698 62 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 9 -Long-Term Debt (Continued): Notes Payable (Continued The debt service requirement to maturity schedule for notes payable assumes that only interest is paid on the Capital Improvement Revenue Note, Series 2004A and 2004 Capital Improvement Revenue Note with principal being paid in the year the note matures as required by government accounting standards. The City's practice, however, has been to budget and appropriate funds for principal and interest payments each fiscal year. Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2008 was as follows: Beginning Balance, Ending Due Within As Restated Additions Reductions Balance One Year Governmental activities: Bonds payable - Revenue bonds $13,883,970 $ - $ (650,000) $13,233,970 $680,000 Special assessment debt with government commitment 2, 040, 000 - (50, 000) 1, 990, 000 55, 000 Limited general obligation bonds 3,070,000 - (70,000) 3,000,000 75,000 Less deferred amounts: - - Issuance discounts (18,511) - 763 (17,748) - Issuance premiums 76,602 - (6,964) 69,638 - On refunding (120,458) - 10,948 (109,510) - Total bonds payable 18,931,603 - (765,253) 18,166,350 810,000 Accreted interest payable (Note 2) 1,872,337 307,556 - 2,179,893 - Notes payable - Capital improvement notes 752,879 750,000 (92,092) 1,410,787 17,449 Capital lease 333,101 - (105,315) 227,786 110,934 Compensated absences 791,012 899,743 (791,012) 899,743 180,000 Governmental activity long-term liabilities (Note 2) $22,680,932 $1,957,299 (1.753.6721 $22,884,559 $1,118,383 Business-type activities: Bonds payable - Revenue bonds $22,829,191 $ - $ (945,000) $21,884,191 $980,000 Less deferred amounts: For issuance discount (26,435) - 1,064 (25,371) - On refunding (811,231) - 58,335 (752,896) - Total bonds payable 21,991,525 - (885,601) 21,105,924 980,000 Accreted interest payable (Note 2) 1,748,006 334,299 - 2,082,305 - Compensated absences 169,526 182,621 (169,526) 182,621 37,000 Business-type activity long-term liabilities (Note 2) $23,909,057 $ 516,920 $(1.055,127) $23,370,850 $1,017,000 63 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS Note 10 - InterFund Receivables, Payables and Transfers: The composition of interfund balances as of September 30, 2008 is as follows: Receivable Fund Payable Fund Amount Public and Communications Service Tax Special General Revenue $ 135,741 General Road Improvements Special Revenue 1,452,019 General Hazard Mitigation Grant Program Capital Projects 13,887 $1, 601, 647 The accounts payable to the general fund represents the public service tax at year end after all debt service payments have been made that are available to be transferred to the general fund. Interfund transfers for the year ended September 30, 2008 are summarized below: Transfers In Transfers Out General Fund Public & Communications Service Tax Special Revenue Fund Road Improvements Special Revenue Fund Other Governmental Funds Water & Sewer Utility Fund Development Services Fund Stormwater Fund General Fund $ - 3,459,193 September 30, 2008 Other Governmental Funds $ 60, 500 505,200 Water & Sewer Development Stormwater Utility Fund Services Fund Utility Fund $ 3,053 $ 24,431 $ 18,355 Total $ 106,339 3,964,393 52,459 - - - - 52,459 3,058,117 1,250,378 - - - 4,308,495 1,075,530 300,000 - - 36,709 1,412,239 604,986 - - - 604,986 104,095 150,000 6,000 - - 260,095 $ 8,354,380 $ 2,266,078 $ 9,053 $ 24,431 $ 55,064 $ 10,709,006 64 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 10 - InterFund Receivables, Payables and Transfers (continued): Interfund transfers for the year ended September 30, 2008 are detailed below: Recipient fund Amount Purpose Transfer from Electric Franchise Fee Special Revenue Fund to pay Debt Service expenses on the Improvement Refunding 1999 Debt Service Fund 65,200 Revenue Bonds, Series 1999. Transfer from Public & Communications Service Tax Special Revenue Fund to pay Debt Service expenses on the Improvement 1999 Debt Service Fund 65,200 Refunding Revenue Bonds, Series 1999. Transfer from Electric Franchise Fee Special Revenue Fund to pay Debt Service expenses on the Improvement Refunding 2003 Debt Service Fund 440,000 Revenue Bonds, Series 2003. Transfer from Public & Communications Service Tax Special Revenue Fund to pay Debt Service expenses on the Improvement 2003 Debt Service Fund 440,000 Refunding Revenue Bonds, Series 2003. Transfer from General Fund to pay Debt Service expenses on the Line of Credit for Central Winds G.O. Debt Service the Senior Center Expansion and Therapy Fund 60,000 Pool Transfer from General Fund for share of Development Services personnel cost associated with Community Development Development Services Fund 24,431 functions. Transfer from Water and Sewer Utility Fund for Utility Billing division budget, fair share portion of General Fund expenses, such as human resources, purchasing, finance, etc., special projects, Kiva project, records management project and operator General Fund 1,063,530 expenses. 65 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 10 - InterFund Receivables, Payables and Transfers (continued): Recipient fund General Fund Amount Purpose Transfer from Development Services Fund for indirect costs, administration, fire prevention, Community Development (crossover costs), Information Services special projects, Kiva project and records 604,986 management project expenses. Transfer from Solid Waste/Recycling Special Revenue Fund for administration, franchise fees and Information Services General Fund 136,450 records management project. Transfer from TLBD Phase I Maintenance Special Revenue Fund for City Clerk, Beautification Coordinator and insurance General Fund 56,665 expenses. Transfer from Oak Forest Maintenance Special Revenue Fund for City Clerk, Beautification Coordinator and insurance General Fund 11,293 expenses. Transfer from Public & Communications Service Tax Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, Series 1999 and Series General Fund 3,459,193 2003. Transfer from Fire Assessment Fee Fund to General Fund 1,205,000 fund a portion of the Fire Department. Transfer from Electric Franchise Fee Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, General Fund 1,241,821 Series 1999 and Series 2003. Transfer from Road Improvements Special Revenue Fund for project coordinator General Fund 52,459 services. 66 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 10 - InterFund Receivables, Payables and Transfers (continued): Recipient fund Amount Purpose Transfer from 1999 Construction Capital Project Fund for project coordinator General Fund 12,000 services. Transfer from Water and Sewer Utility Fund General Fund 12,000 for project coordinator services. Transfer from Stormwater Utility Fund for administration, special projects, Kiva project General Fund 104,095 and records management project expenses. Transfer from Senior Center Expansion and Therapy Pool for repayment of short-term loan which was extended from the General Fund in FY 2007 until line of credit was General Fund 394,888 secured. Transfer from Fire Impact Fee Special Hazard Mitigation Grant Program Revenue Fund ($2,895) and General Fund Capital Project Fund 3,395 ($500) for City required grant funds match. Transfer from Hazard Mitigation Grant Program Capital Project Fund excess Park Impact Fee Fund 1,149 funding of City match on grant. Transfer from Senior Center Expansion and Therapy Pool Fund to return previous funding from Park Impact as the Senior Center expansion costs utilized line of credit Park Impact Fee Fund 108,500 proceeds. Transfer from Hazard Mitigation Grant Program Capital Project Fund to return previously submitted matching grant funds for a project which was subsequently Police Impact Fee Fund 12,900 cancelled. Utility/Public Works Facility Capital Transfer from Stormwater Utility Fund for Project Fund 150,000 share of the new Utility/Public Works facility. 67 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 10 - InterFund Receivables, Payables and Transfers (continued): Recipient fund Amount Purpose Transfer from Transportation Improvement Utility/Public Works Facility Capital Fund for share of the new Utility/Public Project Fund 100,000 Works facility. Transfer from Water and Sewer Operating Utility/Public Works Facility Capital for share of the new Utility/Public Works Project Fund 300,000 facility. Transfer from Solid Waste/Recycling Special Revenue Fund for future emergency Storm Reserve Special Revenue Fund 133,662 storm cleanup expenses. Transfer from General Fund ten percent of Stormwater Utility Fund 8,355 engineering expenses less consulting fees. Transfer from Water and Sewer Utility Fund for twenty percent of engineering expenses Stormwater Utility Fund 36,709 less consulting fees. Transfer of residual equity from TLBD TLBD Phase I Maintenance Fund 166,072 Phase II Maintenance Fund. Transfer from Park Impact Fee Special Trotwood Park Improvements Capital Revenue Fund for Trotwood Park Project Fund 220,000 improvements. Transfer from Stormwater Utility Fund for Water and Sewer Utility Fund 6,000 administration fees. Water and Sewer Utility Fund 3,053 Transfer assets from General Fund. $10,699,006 68 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 11 -Defined Benefit Pension Plan: Plan Description The City maintains asingle-employer defined benefit pension plan that provides retirement benefits to all City employees. The pension plan is maintained as a Pension Trust Fund and is included with the fund financial statements. This pension plan does not issue a stand-alone financial report. The Board of Trustees of the plan are appointed by the City Commission to make advisory recommendations regarding plan provisions and amendments. Any recommendations are then taken back to the Commission for final approval. Summary of Significant Accounting Principles The Plan's financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The City's contributions are recognized when due and formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. All Plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price on the government's balance sheet date. Securities without an established market are reported at estimated fair value. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the Board of Trustees of the Plan. Plan members are required to contribute 3% of their salary to the Plan, which amounted to $365,288, for the year ended September 30, 2008. The City is required to contribute at an actuarially determined rate; the current rate is 15.1 % of covered payroll. The City's contribution for the year ended September 30, 2008 was $1,663,951. Administration costs and fees attributable to the plan are paid out of the plan and amounted to $70,423 in 2008. Legal, actuarial and investment monitor costs of the plan are paid out of the General Fund and amounted to $30,980 in 2008. Membership in the Defined Benefit Plan consisted of the following at October 1, 2007: Retirees and beneficiaries receiving benefits 26 Terminated plan members entitled to but not receiving benefits 86 Active plan members: Vested 208 Non-vested 51 371 69 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 11 -Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation - The annual pension cost, net pension obligation and required contribution for September 30, 2008, were determined as part of the actuarial valuation of the plan dated October 1, 2007. The annual pension cost and net pension obligation based on the most recent valuation is: Annual Required Contribution $ 2,005,100 Interest on Net Pension Obligation (NPO) (125) Adjustment to Annual Required Contribution - Annual Pension Cost 2,004,975 City Contributions Made (2,009,085) Increase/(Decrease) in NPO (4,110) NPO beginning of year (1,563) NPO end of year $ (5,673) Three Year Trend Information - Fiscal Annual Percentage Net Year Pension Actual of APC Pension Ending Cost (APC) Contribution Contributed Obligation 9/30/2006 $1,562,165 $1,505,020 96.3% $31,354 9/30/2007 1,810,230 1,843,147 101.8 (1,563) 9/30/2008 2,004,975 2,009,085 100.2 (5,673) As of October 1, 2007, the most recent actuarial valuation date, the Plan was 77.2% funded. The actuarial accrued liability for benefits was $20,114,326 and the actuarial value of assets was $15,526,572, resulting in an unfunded actuarial liability (UAAL) of $4,587,354. The covered payroll (annual payroll of active employees covered by the plan) was $11,190,013, and the ratio of the UAAL to the covered payroll was 41.0%. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. The schedule of employer contributions is also presented and shows the extent to which the city has funded the actuarially determined annual required contribution (ARC) over time. The amount legally required as of September 30, 2008 to be reserved for the Plan is $15,622,479. 70 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 11 -Defined Benefit Pension Plan (Continued): Funding Policy (continued) Annual Pension Cost and Net Pension Obligation (Continued) During the past year, the actuarial experience for the Plan was less than expected for some of the actuarial assumptions except the investment experience. The unfavorable actuarial assumption components reflect a 3.5% less than expected turnover experience, a 0.8% greater than expected increase in covered pension compensation and a 0.5% greater than expected increase that includes mortality and age related assumption experience. The investment experience on the actuarial value of the assets for the period prior to the valuation date of October 1, 2007 was 7.4% higher than 8.0% interest assumption. Actuarial Methods and Assumptions -The following is a summary of the actuarial methods and significant actuarial assumptions used in the latest actuarial valuation dated October 1, 2007. The plan was amended October 1, 2004 to increase the benefit formula percentage for service prior to October 1, 2000 of 2.0% by .25% increments each year beginning October 1, 2005 through the plan year beginning October 1, 2008 to 3.0%. Assumptions: Investment Earnings 8% compounded annually Salary Increases/Inflation 3% annually Post-retirement Benefit Increases 0% Mortality Table 1983 Group Annuity Male Mortality Table, with women ages set back two years Normal Form Life annuity with payments for life of participant Retirement Age Later of age 60 or 10 years of service on the valuation date. A 1.5% expense load is added to make allowance for 30 year unreduced benefit provision with LTD disability program. Turnover/Termination Forfeiture Assumed to occur at rates approximating 11.62% at age 25 graded down to 0.16% at age 60 and over (T-8 withdrawal table). Actuarial Valuation: Frequency Annual Funding/Cost Method Aggregate Entry Age Normal Frozen Initial Liability Amortization Method Level Percentage of Projected Payroll plus amortization of past service frozen initial liability Amortization Period 30 Years Asset Valuation Method Long Range Yield 71 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 12 -Deferred Compensation Plan: All employees of the City may voluntarily elect to participate in one of two available deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are administered by Nationwide Retirement Solutions and ICMA Retirement Corporation. The plans permit participants 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. Because the Plan Assets are held in trust for the exclusive benefit of plan participants and their beneficiaries, the Plan is not accounted for in the City's fund financials. Note 13 -Risk Management: The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; job-related illnesses or injuries to employees; and natural disasters. Risk of loss from above is transferred by the City to various commercial insurers through the purchase of insurance. There has been no significant reduction in insurance coverage from the previous year. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. Note 14 -Contingent Liabilities: Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of Florida. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. Note 15 -Commitments: At September 30, 2008, the City had entered into construction contracts in the amount of $328,419. Note 16 -Subsequent Events: First, as discussed in Note 5, at September 30, 2008, the City had $7,983,129 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool (Pool). As of December 23, 2008, Pool A has been fully liquidated and transferred out of the SBA. As of February 28, 2009, Pool B had a cost of $1,148,237. As of February 28, 2009 Pool B had a total unrealized decline in fair market value of $433,946. On March 6, 2009 an additional $11,626 was released from Pool B, leaving an original cost of $1,136,611. 72 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 16 -Subsequent Events (Continued): Pool B is currently managed by Federated Investors to maximize the participant's present value of distributions with cash holdings being distributed to them as it becomes available from maturities, sales and received income. On the January 12, 2009 investor conference call held by the SBA and Federated Investors, SBA Director Ash Williams re-iterated that the SBA was fully committed to making all participants in Pool B whole. He went on to state that after talking with many Pool B participants that their goal was to be made whole as well and understand the importance of holding onto the investments at this time. In addition, at September 30, 2008, the City had $17,899,306 invested in The Reserve - US Treasury Fund Institutional Class money market mutual fund. On October 8, 2008 the City received notice that: this fund was no longer offering any class of shares for purchase; the US Treasury Fund had failed to pay redemptions proceeds within the seven calendar days required by the Investment Company Act of 1940 at times between September 15, 2008 and October 8, 2008; and the US Treasury Fund's Independent Registered Public Accounting Firm had raised substantial doubt about US Treasury Fund's ability to continue as a going concern. At that time, the fund contained two US Treasury bill investments with maturity dates of December 4 and December 11, 2008. On December 4, the City redeemed their shares at full value ($1.00 per share) and closed their account. On January 12, 2009, the City Commission authorized hiring PFM Asset Management LLC, one of the five respondents to the City's RFP, as the City's Investment Advisor. On February 23, 2009, Resolution No. 2009-18, the City's amended Investment Policy, was adopted by the City Commission. Second, the Florida Legislature began their 2009 session on March 2, 2009. There are numerous bills that are being reviewed that could impact local governments financially or their financial operations, such as: a 3 year moratorium on impact fees (SB 630 and HB 1129); limiting state and local government revenues and requiring voter approval of new taxes and fees (SB 1906 and HB 1263); limiting the collection of revenues by state and local government (HB 905 and SB 1906) to changes in population and inflation plus one percent and that the legislature provide for an increase in the revenue limitation placed on local governments in order to comply with state and federal unfunded mandates; restricting the aggregate taxation of a parcel of real property to 1.35% of the property's taxable value (or 13.5 mills) that would be split by municipalities, counties, school boards and special districts as determined by the legislature; limiting the assessment growth on commercial and residential rental property to 5% annually or a 3 year average and provide first time home buyers a property tax exemption equal to 50% of the property's just value in the first year and reduced by 20% each succeeding year; and altering the application of the "Recapture" rule to real properties that are protected by Save Our Homes to allow for an increase in the assessed value of a homestead property only when there is in an increase in the market value of the property, any decrease in just value would result in a decrease in assessed value and if there was no change in the just value of the property there would be no change in the assessed value of the property. It is unknown what the fiscal impact of these bills would be at this time. 73 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2008 Note 16 -Subsequent Events (Continued): Lastly, since September 30, 2008 the bond insurers who insure the City's outstanding bond issues have suffered further rating downgrades resulting in an equivalent downgrade of the insured rating on the City's bonds. The City's own rating did not change. The City as required by Securities and Exchange Commission Rule 15c-12 provided the appropriate notices of such bond insurer rating downgrades to the Nationally Recognized Municipal Securities Information Repositories through the Municipal Advisory Council of Texas, a State Information Depository. Fitch and Standard and Poor's may be contacted for further information regarding these downgrades. 74 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION Defined Benefit Pension Trust Fund September 30, 2008 Schedule of Fundina Proaress Actuarial Accrued UAAL as Actuarial Liability a % of Actuarial Value of (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL Ratio Payroll Payroll (UAAL) Date (a) (b) (b-a) (a/b) (c) (b-a)/c 10/1/2002 $6,620,248 $9,128,522 $2,508,274 72.5% $6,586,077 38.1% 10/1/2003 7,279,048 9,771,594 2,492,546 74.5 8,094,829 30.8 10/1/2004 8,134,588 10,931,774 2,797,186 74.4 8,982,189 31.1 10/1/2005 9,716,089 13,178,485 3,462,396 73.7 9,659,446 35.8 10/1/2006 11,951,383 16,042,749 4,091,366 74.5 10,489,087 39.0 10/1/2007 15,526,572 20,114,326 4,587,354 77.2 11,190,013 41.0 Schedule of Employer Contributions Annual Fiscal Required Year Contribution Ending (ARC) 9/30/2003 $761,269 9/30/2004 1,156, 923 9/30/2005 1,424,101 9/30/2006 1,564,228 9/30/2007 1, 807, 722 9/30/2008 2,005,100 Percentage Actual of ARC Contribution Contributed $903,748 118.7% 1, 013, 379 87.6 1,260,627 88.5 1, 505, 020 96.2 1,843,147 102.0 2,009,085 100.2 75 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This page intentionally left blank. MAJOR GOVERNMENTAL FUNDS Debt Service Fund TLBD Debt Service Fund - This fund was established to account for the accumulation of principal and interest for the 2001 special assessment bond issue. This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA TLBD DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 165,800 $ 165,800 $ 55,482 $ (110,318) Investment income 6,900 6,900 104,322 97,422 Miscellaneous - - 10,851 10,851 Total revenues 172,700 172,700 170,655 (2,045) Expenditures: Current: Physical environment 7,397 7,397 4,062 3,335 Debt service: Principal retirement 50,000 50,000 50,000 - Interest and fiscal charges 102,550 102,550 102,492 58 Total expenditures 159,947 159,947 156,554 3,393 Excess of Revenues Over Expenditures 12,753 12,753 14,101 1,348 Net Change in Fund Balance 12,753 12,753 14,101 1,348 Fund Balances -Beginning 171,716 171,716 171,716 - Fund Balances -Ending $ 184,469 $ 184,469 $ 185,817 $ 1,348 76 This page intentionally left blank. NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Police Education Fund - This fund is used to account for the costs of educational expenses for police officers. It is funded by a portion of the collections from fines and forfeitures. Special Law Enforcement - This fund was established to receive revenues from Trust Fund -Local local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes. Such purposes may include drug education programs such as DARE. Transportation - Revenues in this fund are derived from Local Option Improvement Fund Gasoline Tax distribution. Proceeds are to be used for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. Transportation Impact Fee - This fund is used to account for collected impact fees Fund on new development to defray the cost of future road construction as a result of growth. Police Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of police service due to future growth. Fire Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of fire service due to future growth. Parks Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to develop and improve the parks due to future growth. Public Buildings Impact - This fund is used to account for collected impact fees Fee Fund on new development to defray the cost of capital investment needed to maintain public buildings due to future growth. Medical Transport - This fund is used to receive revenues generated from Services Fund fees charged for paramedic services. The proceeds from this fund are used to pay for the incremental costs related to providing these services. Arbor Fund - This fund is used to account for arbor revenues. This revenue source is used to maintain a level of plantings in the City. NONMAJOR GOVERNMENTAL FUNDS -Continued Special Revenue Funds -Continued TLBD Maintenance Fund - This fund is used to account for collected special assessments for maintenance related to the Tuscawilla Lighting and Beautification District for Phases I and II of project. Phase II was accounted for in a separate fund prior to Fiscal Year 2008. TLBD Phase II - This fund is used to account for collected special Maintenance Fund assessments for maintenance related to the Tuscawilla Lighting and Beautification District for Phase II of project. This fund was closed in Fiscal Year 2008 and all maintenance costs (Phases I and II) are now combined in the TLBD Maintenance Fund. Oak Forest Maintenance - This fund is used to account for collected special Fund assessments for maintenance related to the Oak Forest subdivision wall. Emergency and Disaster - This fund is used to account for costs of preparation for Relief Fund and cleanup after the hurricanes of 2004. Special Law Enforcement - This fund was established to receive revenues from Trust Fund -Federal federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes. Such purposes may include drug education programs such as DARE. HOA Projects - - This fund is used to account for costs of projects for Streetlighting and Homeowners Associations such as streetlighting and Signage Fund signage. Storm Reserve Fund - This fund is used to account for reserves set aside from monthly Solid Waste/Recycling fees to cleanup from future storms. Electric Franchise Fee - This fund is used to account for proceeds of electric Fund franchise fees. These proceeds are used to pay annual debt service. Any excess monies not used to pay debt service are transferred to the General Fund. Solid Waste/Recycling - This fund is used to account for proceeds from billed Fund solid waste and recycling services performed by contract vendors. Proceeds are used to pay monthly vendor charges for providing solid waste and recycling services. NONMAJOR GOVERNMENTAL FUNDS -Continued Special Revenue Funds -Continued Fire Assessment Fee - This fund is used to account for collected special Fund assessments for fire operation expenses. The proceeds are transferred to the General Fund to offset fire operations expenses. Veteran's Memorial Fund - This fund is used to account for funds collected to pay for engraving honoree's name in the granite Memorial Name Stand and the on-going maintenance and operation of the Veteran's Memorial. HOA Projects - - This fund is used to account for costs of projects for Streetlighting and Homeowners Associations such as streetlighting and Signage Fund (Non- signage for non-interest bearing projects. escrow) Debt Service Funds 1999 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1999 bond issue. 2003 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue. Oak Forest Debt Service - This fund is used to account for the accumulation of Fund resources and payment of principal and interest for the 2000 note payable (Oak Forest portion). Central Winds G.O. Debt - This fund is used to account for accumulation of Service Fund resources and payment of principal and interest for the 2002 limited general obligation bond. 2004 Capital Projects Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the Capital Improvement Revenue Note Series 2004. TLBD Phase II Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the TLBD Phase II Improvements. NONMAJOR GOVERNMENTAL FUNDS -Continued Capital Projects Funds 1999 Construction Capital - This fund was established for the acquisition and Projects Fund construction of City -owned Capital Improvements. Oak Forest Capital Projects Fund Revolving Rehab Capital Projects Fund City Hall Expansion Capital Projects Fund TLBD Phase II Improvements Capital Projects Fund Hazard Mitigation Grant Program Capital Projects Fund Senior Center Expansion Capital Projects Fund Trotwood Improvements Capital Projects Fund Utility/Public Works Facility Capital Projects Fund - This fund was established to account for construction of the Oak Forest subdivision wall. - This fund was established to provide loans for rehabilitation projects within the City. - This fund was established to account for expansion of City Hall. - This fund was established to account for the construction of the TLBD Phase II Improvements. - This fund was established to account for projects paid for through the Hazard Mitigation Grant Program. - This fund was established to account for the Senior Center Expansion and Therapy Pool project. - This fund was established to account for the construction of the Trotwood Park Improvements. - This fund was established to account for construction of additional public facilities. 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CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2008 Special Revenue Police Special Law Transportation Transportation Education Enforcement Improvement Impact Fund Trust Fund -Local Fund Fee Fund Assets: Cash and cash equivalents $ 1,495 $ 42,955 $ 422,976 $ 572,369 Receivables 1,242 6,738 - - Due from other governments - - - - Prepaid costs 1,780 - - - Special assessment receivable - - - - Total Assets $ 4,517 $ 49,693 $ 422,976 $ 572,369 Liabilities and Fund Balances: Liabilities: Accounts payable $ 10 $ - $ 87,196 $ 2,315 Accrued liabilities - - - - Due to other funds - - - - Deferred revenue - - - 380,081 Unearned revenue - - - - Total Liabilities 10 - 87,196 382,396 Fund Balances: Reserved for Debt Service - - - - Unreserved 4,507 49,693 335,780 189,973 Total Fund Balances 4,507 49,693 335,780 189,973 Total Liabilities and Fund Balances $ 4,517 $ 49,693 $ 422,976 $ 572,369 77 Special Revenue Police Fire Park Public Buildings Medical Impact Impact Impact Impact Transport Arbor Fee Fund Fee Fund Fee Fund Fee Fund Services Fund Fund $ 131,936 $ 981,185 $ 3,891 $ 374,282 $ 519,129 $ 193,471 - - - - 64,149 119,508 $ 131,936 $ 981,185 $ 3,891 $ 374,282 $ 583,278 $ 312,979 $ 1,610 $ 1,143 $ 1,142 $ 1,142 $ 5,435 $ 67,000 - - - - 3,038 - - - - - - 2,508 1,610 1,143 1,142 1,142 8,473 69,508 130,326 980,042 2,749 373,140 574,805 243,471 130,326 980,042 2,749 373,140 574,805 243,471 $ 131,936 $ 981,185 $ 3,891 $ 374,282 $ 583,278 $ 312,979 (Continued) 78 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2008 Special Revenue TLBD Oak Forest Emergency Special Law Maintenance Maintenance and Disaster Enforcement Trust Fund Fund Relief Fund Fund -Federal Assets: Cash and cash equivalents $ 416,238 $ 24,317 $ 720,921 $ 53,296 Receivables 5,632 805 - - Due from other governments - - - - Prepaid costs - - - - Special assessment receivable - - - - Total Assets $ 421,870 $ 25,122 $ 720,921 $ 53,296 Liabilities and Fund Balances: Liabilities: Accounts payable $ 20,330 $ 440 $ - $ - Accrued liabilities - - - - Due to other funds - - - - Deferred revenue - - - - Unearned revenue - - - - Total Liabilities 20,330 440 - - Fund Balances: Reserved for Debt Service - - - - Unreserved 401,540 24,682 720,921 53,296 Total Fund Balances 401,540 24,682 720,921 53,296 Total Liabilities and Fund Balances $ 421,870 $ 25,122 $ 720,921 $ 53,296 79 Special Revenue HOA Projects - Storm Solid Waste/ Fire Veteran's Streetlighting and Reserve Recycling Assessment Fee Memorial Signage Fund Fund Fund Fund Fund Total $ 5,508 $ 347,028 $ 1,067,867 $ 16,907 $ 14,867 $ 5,910,638 - - 4,913 - - 202,987 - 1,858 3,128 - - 4,986 - - - - - 1,780 $ 5,508 $ 348,886 $ 1,075,908 $ 16,907 $ 14,867 $ 6,120,391 $ - $ 1,402 $ 167,455 $ 12,548 $ - $ 369,168 - - - - - 3,038 - - - - - 380,081 - - - - - 2,508 - 1,402 167,455 12,548 - 754,795 5,508 347,484 908,453 4,359 14,867 5,365,596 5,508 347,484 908,453 4,359 14,867 5,365,596 $ 5,508 $ 348,886 $ 1,075,908 $ 16,907 $ 14,867 $ 6,120,391 (Continued) 80 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2008 Debt Service Oak Forest Ce ntral Winds 1999 Debt 2003 Debt Debt Service G.O. Debt Service Service Fund Service Fund Fund Fund Assets: Cash and cash equivalents $ 114,100 $ 782,618 $ 3,251 $ 44,650 Receivables - - 793 1,604 Due from other governments - - - - Prepaid costs - - - - Special assessment receivable - - 522,264 - Total Assets $ 114,100 $ 782,618 $ 526,308 $ 46,254 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - Due to other funds - - - Deferred revenue - - 522,264 - Unearned revenue - - - - Total Liabilities - - 522,264 - Fund Balances: Reserved for Debt Service 114,100 782,618 4,044 46,254 Unreserved - - - - Total Fund Balances 114,100 782,618 4,044 46,254 Total Liabilities and Fund Balances $ 114,100 $ 782,618 $ 526,308 $ 46,254 81 Debt Service Capital Projects 2004 Capital TLBD Phase II 1999 Revolving Projects Debt Debt Construction Oak Forest Rehab Service Fund Service Fund Total Fund Fund Fund $ 25,170 $ 640 $ 970,429 $ 1,030,342 $ 15,523 $ 1,007,847 - 293 2,690 - - - - 304,442 826,706 - - - $ 25,170 $ 305,375 $ 1,799,825 $ 1,030,342 $ 15,523 $ 1,007,847 $ - $ - $ - $ 10,582 $ - $ 60 - 304,442 826,706 - - - - 304,442 826,706 10,582 - 60 25,170 933 973,119 - - - - - - 1,019,760 15,523 1,007,787 25,170 933 973,119 1,019,760 15,523 1,007,787 $ 25,170 $ 305,375 $ 1,799,825 $ 1,030,342 $ 15,523 $ 1,007,847 (Continued) 82 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2008 Capital Projects City Hall TLBD Phase II Hazard Senior Center Expansion Improvements Mitigation Grant Expansion Fund Fund Program Fund Fund Assets: Cash and cash equivalents $ 10,176 $ 44,051 $ - $ 3,273 Receivables - - - - Due from other governments - - 18,563 - Prepaid costs - - - - Special assessment receivable - - - - Total Assets $ 10,176 $ 44,051 $ 18,563 $ 3,273 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 6,328 $ - $ - Accrued liabilities - - - - Due to other funds - - 13,887 - Deferred revenue - - - - Unearned revenue - - - - Total Liabilities - 6,328 13,887 - Fund Balances: Reserved for Debt Service - - - - Unreserved 10,176 37,723 4,676 3,273 Total Fund Balances 10,176 37,723 4,676 3,273 Total Liabilities and Fund Balances $ 10,176 $ 44,051 $ 18,563 $ 3,273 83 Capital Projects Trotwood Utility/Public Nonmajor Improvements Works Facility Governmental $ 222,800 $ 1,530,245 $ 3,864,257 $ 10,745,324 - - - 205,677 - - 18,563 23,549 - - - 1,780 $ 222,800 $ 1,530,245 $ 3,882,820 $ 11,803,036 $ - $ - $ 16,970 $ 386,138 - - - 3,038 - - 13,887 13,887 - - - 1,206,787 - - - 2,508 - - 30,857 1,612,358 - - - 973,119 222,800 1,530,245 3,851,963 9,217,559 222,800 1,530,245 3,851,963 10,190,678 $ 222,800 $ 1,530,245 $ 3,882,820 $ 11,803,036 84 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2008 Special Revenue Police Special Law Transportation Transportation Education Enforcement Improvement Impact Fund Trust Fund -Local Fund Fee Fund Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - - Intergovernmental revenues - - 493,239 - Chargesfor services - - 14,040 - Finesand forfeitures 17,626 33,558 - - Impact fees/assessments - - - 145,236 Investment income 123 521 9,054 11,000 Miscellaneous 509 - - - Total revenues 18,258 34,079 516,333 156,236 Expenditures: Current: General government - - - - Public safety 43,303 9,335 - - Physical environment - - 214,252 - Culture and recreation - - - - Debt Service: Principal retirement - - - - Interestand fiscal charges - - - - Capital outlay: General government - - - - Public safety - 4,753 - - Physical environment - - 356,888 396,825 Culture and recreation - - - - Total expenditures 43,303 14,088 571,140 396,825 Excess (Deficiency) of Revenues over Expenditures (25,045) 19,991 (54,807) (240,589) Other Financing Sources (Uses): Transfers in - - - - Transfersout - - (100,000) - Notes issued - - - - Net other financing sources (uses) - - (100,000) - Net Change in Fund Balances (25,045) 19,991 (154,807) (240,589) Fund Balances -Beginning 29,552 29,702 490,587 430,562 Fund Balances -Ending $ 4,507 $ 49,693 $ 335,780 $ 189,973 85 Special Revenue Police Fire Parks Public Buildings Medical Impact Impact Impact Impact Transport Arbor - - - - - 12,078 - - - - - 117,000 - - - - 496,035 - - - - - - 2,000 14,650 38,227 1,423 25,945 - - 2,383 15,583 1,700 5,902 6,799 3,583 - - - - 5,433 - 17,033 53,810 3,123 31,847 508,267 134,661 6,564 3,147 - 3,147 435,759 - - - - - - 129,765 - - 1,074 - - - 50, 048 - - - - - 56,612 3,147 1,074 3,147 435,759 129,765 (39,579) 50,663 2,049 28,700 72,508 4,896 12,900 - 109,649 - - - - (2,895) (220,000) - - - 12,900 (2,895) (110,351) - - - (26,679) 47,768 (108,302) 28,700 72,508 4,896 157,005 932,274 111,051 344,440 502,297 238,575 $ 130,326 $ 980,042 $ 2,749 $ 373,140 $ 574,805 $ 243,471 (Continued) 86 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2008 Special Revenue TLBD TLBD Phase II Oak Forest Emergency Maintenance Maintenance Maintenance and Disaster Fund Fund Fund Relief Fund Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - - Intergovernmental revenues - - - - Chargesfor services - - - - Finesand forfeitures - - - - Impact fees/assessments 526,275 - 53,414 - Investment income 8,843 666 706 11,527 Miscellaneous - - 4,700 - Total revenues 535,118 666 58,820 11,527 Expenditures: Current: General government - - - - Public safety - - - - Physical environment 445,253 - 39,232 233 Culture and recreation - - - - Debt Service: Principal retirement - - - - Interestand fiscal charges - - - - Capital outlay: General government - - - - Public safety - - - - Physical environment - - - - Culture and recreation - - - - Total expenditures 445,253 - 39,232 233 Excess (Deficiency) of Revenues over Expenditures 89,865 666 19,588 11,294 Other Financing Sources (Uses): Transfers in 166,072 - - - Transfersout (56,665) (166,072) (11,293) - Notes issued - - - - Net other financing sources (uses) 109,407 (166,072) (11,293) - Net Change in Fund Balances 199,272 (165,406) 8,295 11,294 Fund Balances -Beginning 202,268 165,406 16,387 709,627 Fund Balances -Ending $ 401,540 $ - $ 24,682 $ 720,921 87 Special Revenue Special Law HOA Projects - Storm Electric Solid Waste/ Enforcement Trust Streetlighting and Reserve Franchise Recycling Fund -Federal Signage Fund Fund Fee Fund Fund - - - 1,748,477 107,639 - - 1,858 - 184,590 - - - - 2,368,656 33, 385 - - - - 581 201 4,261 - 10,917 - - - - 2, 391 33,966 201 6,119 1,748,477 2,674,193 - 1,973 - 1,456 - 500 - - - - - - 10,367 - 2,242,603 - 2, 970 - - - 27,126 - - - - 27,626 4,943 10,367 1,456 2,242,603 6,340 (4,742) (4,248) 1,747,021 431,590 - - 133,662 - - - - - (1,747,021) (270,112) - - 133,662 (1,747,021) (270,112) 6,340 (4,742) 129,414 - 161,478 46,956 10,250 218,070 - 746,975 $ 53,296 $ 5,508 $ 347,484 $ - $ 908,453 (Continued) 88 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2008 Special Revenue HOA Projects - Fire Veteran's Streetlighting and Assessment Fee Memorial Signage Fund Fund Fund (Non-escrow) Total Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - 1,868,194 Intergovernmental revenues - - - 796,687 Charges for services - - - 2,878,731 Fines and forfeitures - - - 86,569 Impact fees/assessments 1,238,211 - - 2,043,381 Investment income 1,230 2 - 95,582 Miscellaneous - 14,865 393 28,291 Total revenues 1,239,441 14,867 393 7,797,435 Expenditures: Current: General government - - - 3,429 Public safety - - - 501,755 Physical environment 30,082 - 393 3,112,180 Culture and recreation - - - 1,074 Debt Service: Principal retirement - - - - Interestand fiscal charges - - - - Capital outlay: General government - - - 2,970 Public safety - - - 81,927 Physical environment - - - 753,713 Culture and recreation - - - - Total expenditures 30,082 - 393 4,457,048 Excess (Deficiency) of Revenues over Expenditures 1,209,359 14,867 - 3,340,387 Other Financing Sources (Uses): Transfers in - - - 422,283 Transfers out (1,205,000) - - (3,779,058) Notes issued - - - - Net other financing sources (uses) (1,205,000) - - (3,356,775) Net Change in Fund Balances 4,359 14,867 - (16,388) Fund Balances -Beginning - - - 5,381,984 Fund Balances -Ending $ 4,359 $ 14,867 $ - $ 5,365,596 89 Debt Service Oak Forest Central Winds 2004 Capital 1999 Debt 2003 Debt Debt Service G.O. Debt Service Projects Debt Service Fund Service Fund Fund Fund Service Fund $ - $ - $ - $ 217,872 $ - - - 14,231 - - 2,338 7,860 22,942 2,263 50 - - 22,039 - - 2,338 7,860 59,212 220,135 50 - - 4,871 - - 270,000 380,000 33,810 70,000 30,082 94,088 264,285 18,197 151,453 5,443 364,088 644,285 56,878 221,453 35,525 (361,750) (636,425) 2,334 (1,318) (35,475) 130,400 880,000 - - 60,000 130,400 880,000 - - 60,000 (231,350) 243,575 2,334 (1,318) 24,525 345,450 539,043 1,710 47,572 645 $ 114,100 $ 782,618 $ 4,044 $ 46,254 $ 25,170 (Continued) 90 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2008 Debt Service Capital Projects TLBD Phase II 1999 Debt Construction Oak Forest Service Fund Total Fund Fund Revenues: Taxes: Property taxes $ - $ 217,872 $ - $ - Permits and fees - - - - Intergovernmental revenues - - - - Chargesfor services - - - - Finesand forfeitures - - - - Impact fees/assessments 17,614 31,845 - - Investment income 13,629 49,082 22,265 375 Miscellaneous 10,240 32,279 5,500 - Total revenues 41,483 331,078 27,765 375 Expenditures: Current: General government 668 668 - - Public safety - - - - Physical environment - 4,871 - 1,550 Culture and recreation - - - - Debt Service: Principal retirement 28,200 812,092 - - Interestand fiscal charges 13,087 546,553 - - Capital outlay: General government - - - - Public safety - - - - Physical environment - - 261,308 21,797 Culture and recreation - - - - Total expenditures 41,955 1,364,184 261,308 23,347 Excess (Deficiency) of Revenues over Expenditures (472) (1,033,106) (233,543) (22,972) Other Financing Sources (Uses): Transfers in - 1,070,400 - - Transfersout - - (12,000) - Notes issued - - - - Net other financing sources (uses) - 1,070,400 (12,000) - Net Change in Fund Balances (472) 37,294 (245,543) (22,972) Fund Balances-Beginning 1,405 935,825 1,265,303 38,495 Fund Balances -Ending $ 933 $ 973,119 $ 1,019,760 $ 15,523 91 Capital Projects Revolving Clty Hall TLBD Phase II Hazard Senior Center Trotwood Rehab Expansion Improvements Mitigation Grant Expansion Improvements Fund Fund Fund Program Fund Fund Fund - - - 93,729 5,292 - 16,170 151 2,837 1,505 5,717 572 16,170 151 2,837 95,234 11,009 572 9,372 - - - - - - - - - 14,406 - - - 227,968 82,977 - - - - - - 239,951 11,812 9,372 - 227,968 82,977 254,357 11,812 6,798 151 (225,131) 12,257 (243,348) (11,240) - - - 3,395 - 220,000 - - - (14,049) (503,388) - - - - - 750,000 - - - - (10,654) 246,612 220,000 6,798 151 (225,131) 1,603 3,264 208,760 1,000,989 10,025 262,854 3,073 9 14,040 $ 1,007,787 $ 10,176 $ 37,723 $ 4,676 $ 3,273 $ 222,800 (Continued) 92 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2008 Capital Projects Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt Service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Notes issued Net other financing sources (uses) Net Change in Fund Balances Fund Balances -Beginning Fund Balances -Ending Utility/Public Nonmajor Works Facility Governmental $ - $ - $ 217,872 - - 1,868,194 - 99,021 895,708 - - 2,878,731 - - 86,569 - - 2,075,226 21,527 71,119 215,783 - 5,500 66,070 21,527 175,640 8,304,153 - 9,372 13,469 - - 501,755 - 1,550 3,118,601 - 14,406 15,480 - - 812,092 - - 546,553 - 310,945 313,915 - - 81,927 - 283,105 1,036,818 - 251,763 251,763 - 871,141 6,692,373 21,527 (695,501) 1,611,780 550,000 773,395 2,266,078 - (529,437) (4,308,495) - 750,000 750,000 550,000 993,958 (1,292,417) 571,527 298,457 319,363 958,718 3,553,506 9,871,315 $ 1,530,245 $ 3,851,963 $ 10,190,678 93 CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Budgeted Amounts Original Final Revenues: Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: Public safety Total expenditures Deficiency of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending $ 20,000 $ 19,000 $ 700 700 - 509 Variance with Final Budget- Actual Positive Amounts (Negative) 17,626 $ (1,374) 123 (577) 509 - 20,700 20,209 18,258 (1,951) 45,000 45,509 43,303 2,206 45,000 45,509 43,303 2,206 (24,300) (25,300) (25,045) (24,300) (25,300) (25,045) 29,552 29,552 29,552 $ 5,252 $ 4,252 $ 4,507 $ 255 255 255 94 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST -LOCAL - SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public safety Capital outlay: Public safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Uses Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ - $ 1,350 Variance with Final Budget- Actual Positive Amounts (Negative) 33,558 $ 32,208 521 521 - 1,350 34,079 32,729 1,000 9,335 9,335 - - 4,753 4,753 - 1,000 14,088 14,088 - (1,000) (12,738) 19,991 32,729 (14, 000) - - - (14, 000) - - - (15,000) (12,738) 19,991 32,729 29,702 29,702 29,702 - $ 14,702 $ 16,964 $ 49,693 $ 32,729 95 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Budgeted Amounts Original Final Variance with Final Budget- Positive (Negative) Revenues: Intergovernmental revenues $ 558,273 $ 533,151 $ 493,239 $ (39,912) Charges for services 10,200 10,200 14,040 3,840 Investment income 9,400 9,400 9,054 (346) Total revenues 577,873 552,751 516,333 (36,418) Expenditures: Current: Physical environment 165,600 251,600 214,252 37,348 Capital outlay: Physical environment 376,500 405,769 356,888 48,881 Total expenditures 542,100 657,369 571,140 86,229 Excess (Deficiency) of Revenues Over Expenditures 35,773 (104,618) (54,807) 49,811 Other Financing Uses Transfers out (100,000) (100,000) (100,000) - Net other financing uses (100,000) (100,000) (100,000) - Net Change in Fund Balance (64,227) (204,618) (154,807) 49,811 Fund Balances -Beginning 490,587 490,587 490,587 - Fund Balances -Ending $ 426,360 $ 285,969 $ 335,780 $ 49,811 Actual Amounts 96 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Impact fees/assessments Investment income Total revenues Expenditures: Current: Physical environment Capital outlay: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Actual Original Final Amounts $ 1,040,000 $ 165,000 $ 145,236 22,000 22,000 11,000 1, 062, 000 187, 000 156,236 15, 000 14,108 Variance with Final Budget- Positive (Negative) $ (19,764) (11,000) (30,764) - 14,108 600,000 416,845 396,825 20,020 615,000 430,953 396,825 34,128 447,000 (243,953) (240,589) 447,000 (243,953) (240,589) 430,562 430,562 430,562 3, 364 3, 364 $ 3,364 97 CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 106,000 $ 14,728 $ 14,650 $ (78) Investment income 7,000 3,800 2,383 (1,417) Total revenues 113,000 18,528 17,033 (1,495) Expenditures: Current: Public safety - 7,159 6,564 595 Capital outlay: Public safety 43,500 50,578 50,048 530 Total expenditures 43,500 57,737 56,612 1,125 Excess (Deficiency) of Revenues Over Expenditures 69,500 (39,209) (39,579) (370) Other Financing Sources (Uses) Transfers in - 12,900 12,900 - Transfers out (14,270) - - - Net other financing sources (uses) (14,270) 12,900 12,900 - Net Change in Fund Balance 55,230 (26,309) (26,679) (370) Fund Balances -Beginning 157,005 157,005 157,005 - Fund Balances -Ending $ 212,235 $ 130,696 $ 130,326 $ (370) 98 CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 210,000 $ 42,000 $ 38,227 $ (3,773) Investment income 41,000 41,000 15,583 (25,417) Total revenues 251,000 83,000 53,810 (29,190) Expenditures: Current: Public safety - 8,148 3,147 5,001 Capital outlay: Public safety 30,000 24,352 - 24,352 Total expenditures 30,000 32,500 3,147 29,353 Excess of Revenues Over Expenditures 221,000 50,500 50,663 163 Other Financing Uses Transfers out - (2,895) (2,895) - Net other financing uses - (2,895) (2,895) - Net Change in Fund Balance 221,000 47,605 47,768 163 Fund Balances -Beginning 932,274 932,274 932,274 - Fund Balances -Ending $ 1,153,274 $ 979,879 $ 980,042 $ 163 99 CITY OF WINTER SPRINGS, FLORIDA PARK IMPACT FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 360,000 $ 1,500 $ 1,423 $ (77) Investment income 3,600 3,600 1,700 (1,900) Total revenues 363,600 5,100 3,123 (1,977) Expenditures: Current: Culture and recreation - 3,148 1,074 2,074 Total expenditures - 3,148 1,074 2,074 Excess of Revenues Over Expenditures 363,600 1,952 2,049 97 Other Financing Sources (Uses) Transfers in - 109,649 109,649 - Transfers out (232,700) (220,000) (220,000) - Net other financing uses (232,700) (110,351) (110,351) - Net Change in Fund Balance 130,900 (108,399) (108,302) 97 Fund Balances -Beginning 111,051 111,051 111,051 - Fund Balances -Ending $ 241,951 $ 2,652 $ 2,749 $ 97 100 CITY OF WINTER SPRINGS, FLORIDA PUBLIC BUILDINGS IMPACT FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 170,000 $ 25,945 $ 25,945 $ - Investmentincome 17,000 5,903 5,902 (1) Total revenues 187,000 31,848 31,847 (1) Expenditures: Current: Public safety - 3,148 3,147 1 Total expenditures - 3,148 3,147 1 Excess of Revenues Over Expenditures 187,000 28,700 28,700 - Net Change in Fund Balance 187,000 28,700 28,700 - Fund Balances -Beginning 344,440 344,440 344,440 - Fund Balances -Ending $ 531,440 $ 373,140 $ 373,140 $ - 101 CITY OF WINTER SPRINGS, FLORIDA MEDICAL TRANSPORT SERVICES SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Charges for services $ 500,000 $ 255,000 $ 496,035 $ 241,035 Investment income 16,200 16,200 6,799 (9,401) Miscellaneous - - 5,433 5,433 Total revenues 516,200 271,200 508,267 237,067 Expenditures: Current: Public safety 320,377 270,527 435,759 (165,232) Total expenditures 320,377 270,527 435,759 (165,232) Excess of Revenues Over Expenditures 195,823 673 72,508 71,835 Other Financing Uses Transfers out (162,000) - - - Net other financing uses (162,000) - - - Net Change in Fund Balance 33,823 673 72,508 71,835 Fund Balances -Beginning 502,297 502,297 502,297 - Fund Balances -Ending $ 536,120 $ 502,970 $ 574,805 $ 71,835 102 CITY OF WINTER SPRINGS, FLORIDA ARBOR SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Permits and fees Intergovernmental revenues Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) $ 20,200 $ 15,200 $ 12,078 $ (3,122) 142,000 - 117,000 117,000 500 500 2,000 1,500 8,500 8,500 3,583 (4,917) 500 500 - (500) 171,700 24,700 134,661 109,961 162,490 137,490 129,765 7,725 162,490 137,490 129,765 7,725 9,210 (112,790) 4,896 9,210 (112,790) 4,896 238,575 238,575 238,575 117,686 117,686 $ 117,686 103 CITY OF WINTER SPRINGS, FLORIDA TLBD MAINTENANCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 520,000 $ 520,000 $ 526,275 $ 6,275 Investment income 9,200 9,200 8,843 (357) Total revenues 529,200 529,200 535,118 5,918 Expenditures: Current: Physical environment 476,748 475,341 445,253 30,088 Total expenditures 476,748 475,341 445,253 30,088 Excess of Revenues Over Expenditures 52,452 53,859 89,865 36,006 Other Financing Sources (Uses) Transfers in 114,485 166,072 166,072 - Transfers out (60,274) (56,665) (56,665) - Net other financing sources 54,211 109,407 109,407 - Net Change in Fund Balance 106,663 163,266 199,272 36,006 Fund Balances -Beginning 202,268 202,268 202,268 - Fund Balances -Ending $ 308,931 $ 365,534 $ 401,540 $ 36,006 104 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II MAINTENANCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Total revenues Excess of Revenues Over Expenditures Other Financing Uses Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final Variance with Final Budget- Actual Positive Amounts (Negative) 666 $ - - 666 666 - - 666 666 - (114,485) (166,072) (166,072) - (114,485) (166,072) (166,072) - (114,485) (165,406) (165,406) - 165,406 165,406 165,406 - $ 50,921 $ - $ - $ - 105 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST MAINTENANCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Budgeted Amounts Original Final Variance with Final Budget- Positive (Negative) Revenues: Impact fees/assessments $ 52,870 $ 52,870 $ 53,414 $ 544 Investment income 400 400 706 306 Miscellaneous - 4,700 4,700 - Total revenues 53,270 57,970 58,820 850 Expenditures: Current: Physical environment 39,966 44,666 39,232 5,434 Total expenditures 39,966 44,666 39,232 5,434 Excess of Revenues Over Expenditures 13,304 13,304 19,588 6,284 Other Financing Uses Transfers out (12,290) (11,293) (11,293) - Net other financing uses (12,290) (11,293) (11,293) - Net Change in Fund Balance 1,014 2,011 8,295 6,284 Fund Balances -Beginning 16,387 16,387 16,387 - Fund Balances -Ending $ 17,401 $ 18,398 $ 24,682 $ 6,284 Actual Amounts 106 CITY OF WINTER SPRINGS, FLORIDA EMERGENCY AND DISASTER RELIEF SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ 16,800 $ 16,800 $ 11,527 $ (5,273) Total revenues 16,800 16,800 11,527 (5,273) Expenditures: Current: Physical environment 563,000 563,000 233 562,767 Total expenditures 563,000 563,000 233 562,767 Excess (Deficiency) of Revenues Over Expenditures (546,200) (546,200) 11,294 557,494 Net Change in Fund Balance (546,200) (546,200) 11,294 557,494 Fund Balances -Beginning 709,627 709,627 709,627 - Fund Balances -Ending $ 163,427 $ 163,427 $ 720,921 $ 557,494 107 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST -FEDERAL -SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public safety Capital outlay: Public safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Uses Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ - $ - Variance with Final Budget- Actual Positive Amounts (Negative) 33,385 $ 33,385 581 581 - - 33,966 33,966 - 500 500 - - 27,127 27,126 1 - 27,627 27,626 1 - (27,627) 6,340 33,967 (24, 000) - - - (24, 000) - - - (24,000) (27,627) 6,340 33,967 46,956 46,956 46,956 - $ 22,956 $ 19,329 $ 53,296 $ 33,967 108 CITY OF WINTER SPRINGS, FLORIDA HOA PROJECTS - STREETLIGHTING AND SIGNAGE -SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Total revenues Expenditures: Current: General government Capital outlay: General government Total expenditures Deficiency of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final Variance with Final Budget- Actual Positive Amounts (Negative) 201 $ 201 - - 201 201 - 1,973 1,973 - - 5,896 2,970 2,926 - 7,869 4,943 2,926 - (7,869) (4,742) 3,127 - (7,869) (4,742) 3,127 10,250 10,250 10,250 - $ 10,250 $ 2,381 $ 5,508 $ 3,127 109 CITY OF WINTER SPRINGS, FLORIDA STORM RESERVE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenues $ - $ - $ 1,858 $ 1,858 Investment income 11,600 4,261 4,261 - Total revenues 11,600 4,261 6,119 1,858 Expenditures: Current: Physical environment - 10,368 10,367 1 Total expenditures - 10,368 10,367 1 Excess (Deficiency) of Revenues Over Expenditures 11,600 (6,107) (4,248) 1,859 Other Financing Sources Transfers in 137,796 133,662 133,662 - Net other financing sources 137,796 133,662 133,662 - Net Change in Fund Balance 149,396 127,555 129,414 1,859 Fund Balances -Beginning 218,070 218,070 218,070 - Fund Balances -Ending $ 367,466 $ 345,625 $ 347,484 $ 1,859 110 CITY OF WINTER SPRINGS, FLORIDA ELECTRIC FRANCHISE FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Permits and fees $ 1,790,000 $ 1,748,477 $ 1,748,477 $ - Total revenues 1,790,000 1,748,477 1,748,477 - Expenditures: Current: General government - 1,456 1,456 - Total expenditures - 1,456 1,456 - Excess of Revenues Over Expenditures 1,790,000 1,747, 021 1,747, 021 - Other Financing Uses Transfers out (1,790,000) (1,747,021) (1,747,021) - Net other financing uses (1,790,000) (1,747,021) (1,747,021) - Net Change in Fund Balance - - - - Fund Balances -Beginning - - - - Fund Balances -Ending $ - $ - $ - $ - 111 CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE/RECYCLING SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Permits and fees $ 128,229 $ 128,229 $ 107,639 $ (20,590) Intergovernmental revenues 100,000 100,000 184,590 84,590 Charges for services 2,445,879 2,416,745 2,368,656 (48,089) Investment income 31,800 31,800 10,917 (20,883) Miscellaneous - - 2,391 2,391 Total revenues 2,705,908 2,676,774 2,674,193 (2,581) Expenditures: Current: Physical environment 2,243,191 2,246,168 2,242,603 3,565 Total expenditures 2,243,191 2,246,168 2,242,603 3,565 Excess of Revenues Over Expenditures 462,717 430,606 431,590 984 Other Financing Uses Transfers out (278,625) (271,969) (270,112) 1,857 Net other financing uses (278,625) (271,969) (270,112) 1,857 Net Change in Fund Balance 184,092 158,637 161,478 2,841 Fund Balances -Beginning 746,975 746,975 746,975 - Fund Balances -Ending $ 931,067 $ 905,612 $ 908,453 $ 2,841 112 CITY OF WINTER SPRINGS, FLORIDA FIRE ASSESSMENT FEE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 2,375,000 $ 1,239,400 $ 1,238,211 $ (1,189) Investment income - - 1,230 1,230 Total revenues 2,375,000 1,239,400 1,239,441 41 Expenditures: Current: Physical environment - 30,100 30,082 18 Total expenditures - 30,100 30,082 18 Excess of Revenues Over Expenditures 2,375,000 1,209, 300 1,209, 359 59 Other Financing Uses Transfers out (2,375,000) (1,205,000) (1,205,000) - Net other financing uses (2,375,000) (1,205,000) (1,205,000) - Net Change in Fund Balance - 4,300 4,359 59 Fund Balances -Beginning - - - - Fund Balances -Ending $ - $ 4,300 $ 4,359 $ 59 113 CITY OF WINTER SPRINGS, FLORIDA VETERAN'S MEMORIAL SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ - $ - $ 2 $ 2 Miscellaneous - 14,865 14,865 - Total revenues - 14,865 14,867 2 Excess of Revenues Over Expenditures - 14,865 14,867 2 Net Change in Fund Balance - 14,865 14,867 2 Fund Balances -Beginning - - - - Fund Balances -Ending $ - $ 14,865 $ 14,867 $ 2 114 CITY OF WINTER SPRINGS, FLORIDA HOA PROJECTS - STREETLIGHTING AND SIGNAGE (NON-ESCROW) -SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Miscellaneous $ - $ 393 $ 393 $ - Total revenues - 393 393 - Expenditures: Current: Physical environment - 393 393 - Total expenditures - 393 393 - Excess of Revenues Over Expenditures - - - - Net Change in Fund Balance - - - - Fund Balances -Beginning - - - - Fund Balances -Ending $ - $ - $ - $ - 115 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ 6,000 $ 3,000 $ 2,338 $ (662) Total revenues 6,000 3,000 2,338 (662) Expenditures: Debt service: Principal retirement 270,000 270,000 270,000 - Interest and fiscal charges 94,800 94,800 94,088 712 Total expenditures 364,800 364,800 364,088 712 Deficiency of Revenues Over Expenditures (358,800) (361,800) (361,750) 50 Other Financing Sources Transfers in 130,400 130,400 130,400 - Net other financing sources 130,400 130,400 130,400 - Net Change in Fund Balance (228,400) (231,400) (231,350) 50 Fund Balances -Beginning 345,450 345,450 345,450 - Fund Balances -Ending $ 117,050 $ 114,050 $ 114,100 $ 50 116 CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ 15,000 $ 8,082 $ 7,860 $ (222) Total revenues 15,000 8,082 7,860 (222) Expenditures: Debt service: Principal retirement 380,000 380,000 380,000 - Interest and fiscal charges 265,800 265,800 264,285 1,515 Total expenditures 645,800 645,800 644,285 1,515 Deficiency of Revenues Over Expenditures (630,800) (637,718) (636,425) 1,293 Other Financing Sources Transfers in 880,000 880,000 880,000 - Net other financing sources 880,000 880,000 880,000 - Net Change in Fund Balance 249,200 242,282 243,575 1,293 Fund Balances -Beginning 539,043 539,043 539,043 - Fund Balances -Ending $ 788,243 $ 781,325 $ 782,618 $ 1,293 117 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Budgeted Amounts Original Final Revenues: Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance with Final Budget- Positive (Negative) $ 58,560 $ 58,560 $ 14,231 $ (44,329) 50 50 22,942 22,892 - - 22,039 22,039 58,610 58,610 59,212 602 5,809 5,809 4,871 938 33,510 33,810 33,810 - 18, 500 18,200 18,197 3 57,819 57,819 56,878 941 791 791 2,334 1,543 791 791 2,334 1,543 1,710 1,710 1,710 - $ 2,501 $ 2,501 $ 4,044 $ 1,543 Actual Amounts 118 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS G.O. DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Taxes: Property taxes Investment income Total revenues Expenditures: Debt service: Principal retirement Interest and fiscal charges Total expenditures Deficiency of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) $ 217,936 $ 217,936 $ 217,872 $ (64) 2,050 2,050 2,263 213 219, 986 219, 986 220,135 149 70,000 70,000 70,000 - 151,600 151,600 151,453 147 221,600 221,600 221,453 147 (1,614) (1,614) (1,318) 296 (1,614) (1,614) (1,318) 296 47,572 47,572 47,572 - $ 45,958 $ 45,958 $ 46,254 $ 296 119 CITY OF WINTER SPRINGS, FLORIDA 2004 CAPITAL PROJECTS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Total revenues Expenditures: Debt service: Principal retirement Interest and fiscal charges Total expenditures Deficiency of Revenues Over Expenditures Other Financing Sources Transfers in Net other financing sources Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ 500 $ 500 $ 500 500 40,000 40,000 30,082 9,918 22,000 20,000 5,443 14,557 62,000 60,000 35,525 24,475 (61,500) (59,500) (35,475) 24,025 60,000 60,000 60,000 - 60,000 60,000 60,000 - (1,500) 500 24,525 24,025 645 645 645 - $ (855) $ 1,145 $ 25,170 $ 24, 025 Variance with Final Budget- Actual Positive Amounts (Negative) 50 $ (450) 50 (450) 120 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Budgeted Amounts Original Final Revenues: Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance with Final Budget- Positive (Negative) $ 40,600 $ 40,600 $ 17,614 $ (22,986) 550 410 13,629 13,219 - - 10,240 10,240 41,150 41,010 41,483 473 1,492 742 668 74 17,500 28,200 28,200 - 13,500 13,087 13,087 - 32,492 42,029 41,955 74 8,658 (1,019) (472) 547 8,658 (1,019) (472) 547 1,405 1,405 1,405 - $ 10,063 $ 386 $ 933 $ 547 Actual Amounts 121 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Miscellaneous Total revenues Expenditures: Capital Outlay: Physical environment Total expenditures Deficiency of Revenues Over Expenditures Other Financing Uses Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) $ 19,000 $ 19,000 $ 22,265 $ 3,265 - 5,500 5,500 - 19,000 24,500 27,765 3,265 1,175,146 317,527 261,308 56,219 1,175,146 317,527 261,308 56,219 (1,156,146) (293,027) (233,543) 59,484 (12,000) (12,000) (12,000) - (12,000) (12,000) (12,000) - (1,168,146) (305,027) (245,543) 59,484 1,265, 303 1,265, 303 1,265, 303 - $ 97,157 $ 960,276 $ 1,019,760 $ 59,484 122 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Total revenues Expenditures: Current: Physical environment Capital Outlay: Physical environment Total expenditures Deficiency of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ 375 $ 375 375 375 Variance with Final Budget- Actual Positive Amounts (Negative) 375 $ - 375 - 1,550 1,550 - 34, 500 32, 950 21,797 11,153 34, 500 34, 500 23, 347 11,153 (34,125) (34,125) (22,972) 11,153 (34,125) (34,125) (22,972) 11,153 38,495 38,495 38,495 - $ 4,370 $ 4,370 $ 15,523 $ 11,153 123 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Miscellaneous Total revenues Expenditures: Current: General government Total expenditures Excess of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ 40, 900 $ 16,171 Variance with Final Budget- Actual Positive Amounts (Negative) 16,170 $ (1) 46, 900 16,171 16,170 1 12,500 12,500 9,372 3,128 12,500 12,500 9,372 3,128 34,400 3,671 6,798 3,127 34,400 3,671 6,798 3,127 1,000,989 1,000, 989 1,000, 989 - $ 1,035,389 $ 1,004,660 $ 1,007,787 $ 3,127 124 CITY OF WINTER SPRINGS, FLORIDA CITY HALL EXPANSION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Investment income Total revenues Excess of Revenues Over Expenditures Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ - $ - Variance with Final Budget- Actual Positive Amounts (Negative) 151 $ 151 - - 151 151 - - 151 151 - - 151 151 10,025 10,025 10,025 - $ 10,025 $ 10,025 $ 10,176 $ 151 125 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II IMPROVEMENTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ 1,500 $ 1,500 $ 2,837 $ 1,337 Miscellaneous 1,000 1,000 - (1,000) Total revenues 2,500 2,500 2,837 337 Expenditures: Capital Outlay: General government 258,000 258,000 227,968 30,032 Total expenditures 258,000 258,000 227,968 30,032 Deficiency of Revenues Over Expenditures (255,500) (255,500) (225,131) 30,369 Net Change in Fund Balance (255,500) (255,500) (225,131) 30,369 Fund Balances -Beginning 262,854 262,854 262,854 - Fund Balances -Ending $ 7,354 $ 7,354 $ 37,723 $ 30,369 126 CITY OF WINTER SPRINGS, FLORIDA HAZARD MITIGATION GRANT PROGRAM CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Intergovernmental Investment income Total revenues Expenditures: Capital Outlay: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Transfers out Net other financing uses Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) $ 135,743 $ 75,166 $ 93,729 $ 18,563 - - 1,505 1,505 135,743 75,166 95,234 20,068 108,679 82,977 82,977 - 108,679 82,977 82,977 - 27,064 (7,811) 12,257 20,068 52,270 3,395 3,395 - (93,623) (14,049) (14,049) - (41,353) (10,654) (10,654) - (14,289) (18,465) 1,603 20,068 3,073 3,073 3,073 - $ (11,216) $ (15,392) $ 4,676 $ 20,068 127 CITY OF WINTER SPRINGS, FLORIDA SENIOR CENTER EXPANSION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Culture and recreation Capital Outlay: Culture and recreation Total expenditures Deficiency of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Note issued Net other financing sources Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Original Final $ 5,291 $ 5,291 Variance with Final Budget- Actual Positive Amounts (Negative) 5,292 $ 1 5,717 2,917 8,091 8,091 11,009 2,918 - 14,621 14,406 215 25,000 239,977 239,951 26 25,000 254,598 254,357 241 (16,909) (246,507) (243,348) 3,159 - (503,388) (503,388) - - 750,000 750,000 - - 246,612 246,612 - (16,909) 105 3,264 3,159 9 9 9 - $ (16,900) $ 114 $ 3,273 $ 3,159 128 CITY OF WINTER SPRINGS, FLORIDA TROTWOOD IMPROVEMENTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Revenues: Intergovernmental Investment income Total revenues Expenditures: Capital Outlay: Culture and recreation Total expenditures Deficiency of Revenues Over Expenditures Other Financing Sources Transfers in Net other financing sources Net Change in Fund Balance Fund Balances -Beginning Fund Balances -Ending Budgeted Amounts Actual Original Final Amounts Variance with Final Budget- Positive (Negative) $ 200, 000 $ - $ - $ - - - 572 572 200,000 - 572 572 432,700 15,762 11,812 3,950 432,700 15,762 11,812 3,950 (232,700) (15,762) (11,240) 4,522 232,700 220,000 220,000 - 232,700 220,000 220,000 - - 204,238 208,760 4,522 14,040 14,040 14,040 - $ 14,040 $ 218,278 $ 222,800 $ 4,522 129 CITY OF WINTER SPRINGS, FLORIDA UTILITY/PUBLIC WORKS FACILITY CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2008 Variance With Final Budget- Budgeted Amo unts Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ 13,000 $ 13,000 $ 21,527 $ 8,527 Total revenues 13,000 13,000 21,527 8,527 Expenditures: Capital outlay: General government 1,113,137 - - - Total expenditures 1,113,137 - - - Excess (Deficiency) of Revenues Over Expenditures (1,100,137) 13,000 21,527 8,527 Other Financing Sources Transfers in 550,000 550,000 550,000 - Net other financing sources 550,000 550,000 550,000 - Net Change in Fund Balance (550,137) 563,000 571,527 8,527 Fund Balances -Beginning 958,718 958,718 958,718 - Fund Balances -Ending $ 408,581 $ 1,521,718 $ 1,530,245 $ 8,527 130 This page intentionally left blank. CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY For The Year Ended September 30, 2008 Prior Year Culture Function General Public Physical And Not Government Safety Environment Recreation Available Total Land $ - $ - $ 369,941 $ 3,682,379 $ 5,796,396 $ 9,848,716 Buildings 1,831,415 3,260,419 4,791,543 2,260,563 - 12,143,940 Improvements 47,936 192,006 3,476,312 7,640,036 - 11,356,290 Machinery & equipment 1,771,893 2,843,195 1,387,440 984,198 - 6,986,726 Infrastructure - - 51,443,733 - - 51,443,733 Construction in progress 3,070 - 1,409,327 115,633 - 1,528,030 Total $ 3,654,314 $ 6,295,620 $ 62,878,296 $ 14,682,809 $ 5,796,396 $ 93,307,435 Deletions Balance and Balance 9/30/07 Additions Transfers 9/30/08 General Government $ 3,603,212 $ 128,017 $ 76,915 $ 3,654,314 Public Safety 8,165,501 261,660 2,131,541 6,295,620 Physical Environment 59,067,225 10,076,405 6,265,334 62,878,296 Culture & Recreation 14,292,602 2,494,693 2,104,486 14,682,809 Prior year -function not available 5,796,396 - - 5,796,396 Total $ 90,924,936 $ 12,960,775 $ 10,578,276 $ 93,307,435 131 This page intentionally left blank. Statistical Section This part of the City of Winter Springs' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall health. Contents Page Financial Trends 132 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 138 These schedules contain information to help the reader assess the government's most significant local revenue Debt Capacity 143 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. There are no limitations placed upon the amount of debt the City of Winter Springs may issue by either the City's Charter or the City's Code or by Florida Statutes. Demographic and Economic Information 148 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 150 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. This page intentionally left blank. a 0 ~ ~ N ~ w ~ O ~ ~ ~ ~ C7 ~ o w Z O } ~ ~ ~ U ~ m ~ ~ r N ~ N m ~ N N F ~ Q Q ~ Z W ~ N ~ N N N (6 i . . 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' " O C N N O ~• C N N C (6 N ~ ~ > ~ N ~ N N N N ~ z N N Q ~ N ~ N N U i Q N U i N Q C ~ N ~ i N ~ N Q T '= ~ C i N ~ C ~ i N ~ . ~ O i Q E N ~ ~ ~ N O N ~ O ~ ~ N O w N ~ N ~ N O w y N ~ GJ N X ~ N O L ~ N d ~ m O N ~ O N O N ~ 3 O ~ ~ N O d ~ N 01 N ~ X ~ N > N N 01 N > N N Q 01 C ~ N 01 ~ . _ N ~ ~ C C O J H _ (6 ~ ' ~ O J H _ N _ (6 R ~ _ ' N N N > O N t > O N z C~ m ~ C7 C7 ~ m ~ ~ U C9 m ~ s f .( i S .+ f S S .~ f f N S O z V ~ O ~ N N T U f ~ ~~ ~ d d N (n (6 C Z U N N N O '6 N O ~ Z N Q f ,O O f Q O f 0 N N j w ~ N N t/) U ~ N •^w d f U p j N O ~ a` M r CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Business Tax Fiscal Year Property Tax Franchise Taxi Utility Tax Receipts2 1999 $ 3,101 $ 1,086 $ 1,733 $ 2000 3,324 1,402 2,074 2001 3,626 1,587 2,493 2002 4,278 1,595 3,403 2003 5,057 1,304 3,461 2004 5,653 1,360 3,447 2005 6,198 1,480 3,504 2006 7,383 1,919 3,832 2007 8,265 1,921 3,920 2008 7,130 - 3,976 Taxes included in Unrestricted Intergovernmental Revenues State Revenue Total - ~ ~,y~u - 6,800 - 7, 706 - 9,276 - 9,822 - 10,460 - 11,182 - 13,134 - 14,106 140 11,246 Fiscal Year Sales Tax Sharing Other Total 1999 $ 1,780 $ 583 $ 49 $ 2,412 2000 1,908 647 86 2,641 2001 1,919 681 86 2,686 2002 2,128 691 131 2,950 2003 2,134 764 136 3,034 2004 2,258 843 142 3,243 2005 2,447 1,076 158 3,681 2006 2,701 1,123 147 3,971 2007 2,443 1,108 201 3, 752 2008 2,261 1,021 163 3,445 Note ~ Franchise fees were classified as Taxes prior to fiscal year 2008. Z Business tax receipts (formerly known as Occupational licenses) were classified as Licenses and permits prior to fiscal year 2008. 135 a ~_ 0 W Z_ a W Z_ W 0 ~_ U m .-. C N ~~ ~ 7 ~ (6 i U 7 ~ ~ L ... 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"~ ~ m N m j Q ~ ~ N J a C ~ m r r -6 ~ ~ ~ M ~ a ~ n e r ~ ~ ~ ~ ~ ~ ~ ~ m rv R ~ M e rv M I M ~ ~ ~ M ~ ~ ~ M ~ ~ N ~ ~ M e M ~ < < a "' ~ N ~ M e e ~. ~. ~ .. .. _. _. m _. ~_ _ _ _ E a a E ~ o _ _ 3 ~ ¢ _ - - E a 01 ~ n a ~ ~ a _ _ 0 _ _ ~ _ ¢ ~ _ - _ _ _ _ _ LL 7 y O m 0 O ~- __ a - a 0 ~ E __ a K F ~ U i~ ~~~ w U' a a 0 0 0 w O F F K m d O d Z K U F a Z O a - _ ~ - ~ r ~ E 3 E N ~ - ~ U ~ 41 Z a ~_ 0 J W Z_ a W H Z_ W 0 H U C (6 i N 7 (6 (6 ~ N W N C ~ N H ~ N J ~ 7 O (6 ~~~ 0 0 0 0 0 0 0 0 0 0 r o v v u~ rn o r r u~ ~~ co rn m rn u~ N m u~ o r >~> co v co v v ~ ~ r m ai r r r r r r r co co u~ ~ ~ m ~ a Tai ~~¢ Q ~ `o ~_ r in N r r u~ N o rn u~ ~~ o o co v rn o rn ro m r r o co rn v o v rn u~ Q ~ ~ ai ui o ai co o ro co co -o > ~ N m ~ ~ rn o v ~ r N N ~ ~ ~ ~ ~ ~ N N M M l0 ~ N N N W ~ ~ x LL~ LL~ O W W O O O O W O O O O O LL~ O O O F v v v r co u~ u~ u~ o u~ in in in r in in r v m ri ri ri ri v v v v v ri m m D ~ K m 0 F m o o rn u~ ~ m m m rn v co m o rn m r rn rn m co ~i ui v co ui x> o r o ro o o co v co N _ r o N o ro u~ ri ~ m o ro o o N ~p O O O N M ~ N ~ ~ ~ ~ O V (O O N ~ ~ N N l0 O N F Q fA N M (O I~ ~ O N V O N (O LL m in o co v co u~ d' _ N LL~ W O O T M O O O W LL~ C LL~ W O LL~ O N N N N M V LL~ rn o r u~ LL~ M N V of LL~ N r N O O LL~ r M W ~ a m ~ ~ co v o ~ ro >, ~ m m m m m v m ~ m ~ U Q u~ m m o u~ m m v v v m ~ rn rn rn o o v u~ o v co u~ N r r ~ >. - v o ui ai ui w~ m m v v v v m ~ o m ~ rn v m r o ~n r u~ u~ w ro r m v u~ co co a a m o 0 0 0 0 0 - rn v rn o 0 o m m co N N u~ °~ ai ai ai o 0 ai E 0 0 0 0 r ~ N m co v m ro o 0 0 E U rn r v N v m m_ ro r m rn v ~ U T LL~ M of M of M m r ° N ~n c° ~ ~ m ~ u~ ~ o ro ° r m N V N of of ~ v m u~ N m m ~ o ° a m o ` U ~ o ~ m .- o m m o 0 0 0 0 0 co c~OO m r r ° _ 0 0 0 0 0 ~~ m ~ ~ ro 3~ o °~ 0 0 0 ai ai o w ~ ai ai ai 3 ~ - rn rn rn ro ro rn ~ 3 rn ro ro ro 3 K 3 ` N O ~ N LL~ N ~_ ro cro o v coo cmo o a r W O O .- v °m ro m r o T ~ V (O LL~ M N ~ C N O O V I~ LL~ m o m v co a ~ ~ ~ ~ M of N N U M of O O m o r o x ~ O ~ ~ N d N N M d F T T ~ O O U U °~ °~ m m ~ r u~ v rn o ~r° v m m ~ ~ °~ ~~ r ro v w N co N rn o v ~ ~ o cmo ~ ~ ~ r ~ ~ w E E a°~i ~~ o N N m v coo ro °o m ~ u~ i i b o a ~ U ~ o o N N ai m ~~~ ~ ~ m ~ <» rn o N m v in in o ~ co r m m ~ o rn o 0 0 0 0 rn o 0 0 0 0 l0 M N N N N N N ~ ~ N ~ u 0 0 0 0 0 0 0 0 0 N N N N Z U ~ O W o. LL N 00 r CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAP PING' GOVERNME NTS Last Ten Fiscal Years z Overlapping Rates' St. John's Winter Springs Seminole County School District Water Debt Debt Total Debt Total Manage- Total Direct Fiscal Operating Service Total City Operating Service County Operating Service School ment & Overlap- Year2 Millage Millage Millage Millage Millage Millage Millage Millage Millage District ping Rates 1999 3.5495 0.0000 3.5495 5.1579 0.1234 5.2813 9.1020 0.8160 9.9180 0.4820 19.2308 2000 3.5495 0.0000 3.5495 4.9989 0.1170 5.1159 8.7850 0.7560 9.5410 0.4820 18.6884 2001 3.5400 0.0000 3.5400 4.9989 0.1083 5.1072 8.6550 0.6900 9.3450 0.4720 18.4642 2002 3.7708 0.0000 3.7708 4.9989 0.2208 5.2197 8.5230 0.6390 9.1620 0.4620 18.6145 2003 4.1658 0.0000 4.1658 4.9989 0.2086 5.2075 8.4790 0.5210 9.0000 0.4620 18.8353 2004 4.3000 0.2500 4.5500 4.9989 0.1910 5.1899 8.2410 0.4950 8.7360 0.4620 18.9379 2005 4.3000 0.2500 4.5500 4.9989 0.1721 5.1710 8.1270 0.3850 8.5120 0.4620 18.6950 2006 4.6126 0.1374 4.7500 4.9989 0.2041 5.2030 7.9650 0.0000 7.9650 0.4620 18.3800 2007 4.2919 0.1100 4.4019 4.9989 0.1451 5.1440 7.7530 0.0000 7.7530 0.4620 17.7609 2008 3.2496 s 0.1022 3.3518 4.3578 0.1451 4.5029 7.4130 0.0000 7.4130 0.4158 15.6835 Note Source: Seminole County Tax Collector (www.seminoletax.org) Overlapping rates are those of local and county governments that apply to property owners within the City of Winter Springs. Z Taxes levied for the fiscal year are based on the prior year taxable value. s In fiscal year 2008 a Fire Assessment Fee was adopted to fund a portion of Fire Department operations in the City of Winter Springs. 139 z 0 U Q W 0 J ~' 0 O U 0 '^_ Z rVnJ Q V IA Nz /v, LL ~ ~ J ~ J_ m z Cz C LL ~ 0 ~ W ~ ~ H ~ U Q J Q U W d U ~_ C J N LO N N M CO f0/1 N C LO N M ~ CO r (6 N . a ~ , 0 o m ~ J F C p ~ ' ' ' ' ' ' N LO d) N I~ LO ~ U C N ~ ~ ~ V d) V O O w ~ O ~ ~ ~ U N N ~ -6 C Q Efl m C m ~ ~ J C ~ ~ ~ V V ~ ~ t/1 - N Y ~ m ~ ~ ~ ~ a ~ Efl ~ ~ U N LO M (O V d) O N M N d) V d) CO O CO M O t/1 C (O N ~ M O M M ~ (6 L N r r r r r r r N a 0 o m ~ F O (p N (O CO LO M LO ~ ~ ~ ~ d) M N LO I~ O r V I~ N N d) O M O U N ~ N O O r d) r O M E O V V I~ r r r r d) ~ (6 t/1 t~ U N V V M M M M M (O N m N ~ ~ a Efl m L m ~ CO M O V (O V V I~ V d) O r O O J ~ V O I~ d) N N O V (6 N -O d) d) M O O O V ~~ ~ ~ V V M M M M M I~ ~ ~ 0] Y ~ N ~ ~ ~ ~ Q ~ co o N m ° v U ~ c O c o c o o d) r CO d) N O V r ~ N N M N N M M M ' d) N d) O W r r LO N O O ~ CO (O O O CO I~ LO ~ ~ O O W V M d) M N ~ d) O W O r LO O N N r W r W d) d) d) r ~ N ~ ~ ~ Q ~ ' LO CO V LO LO LO LO ~ LO N I~ V d) d) d) r C (O N (O M LO LO LO O O N N N M d) d) d) O ~ ~ _ W W W W d) d) d) r ~ ~ _ 0] Q ~ m ~ U N LL r X ~`p ~ N ~ } O N M V LO (O I~ W O O O O O O O O O O O O O O O O O O d) O N M V LO (O I~ ~ O O O O O O O O ~ N N N N N N N N E ~ ° v ~ ° -° _ -6 jp (6 ~ o a i N O ~ C N ~ ~ O C N ~ a °~' s ~ ~ o -o ~ O] ~ J E U ~ ~ ~ ~p C O ~ Z . L ~ . . Q _ (p CO U d' O O 00 ~ 0 N N ~ 0 O O O (6 t/i (6 ~ ~ N N ~ O ~ ~ ~ ~ ~ N ~ Q ~ ~ ~ (6 t/1 ~ ~ LL ~ ~ ( 6 N N N ~ (6 ~ `o- m d ~ ~ ~ ~ ~ o -6 C 0] t~/1 J t/1 C N ~ m f0/1 ~ f0/1 f0/1 ~ (6 (6 N Q N L L ~ N o m o a a z LL Y N m m ~ 0 F F 0 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS September 30, 2008 (amounts expressed in thousands) 2008 1999 Percentage of Total Taxable Taxable Taxable Assessed Assessed Assessed Taxpayer Value Rank Value Value Laurel Oaks LLC $ 33,083 1 1.49°k $ - Courtney Springs LLC 21,078 2 0.95°k - Capital Green I LLC 19,687 3 0.89°k - Florida Power Corporation 18,646 4 0.84°k 8,465 United Dominion Realty Trust 11,197 5 0.50°k 7,103 Winter Springs Holdings Inc 9,137 6 0.41 °k - Levitt & Sons of Seminole County LLC 8,307 7 0.37°k - Tousa Homes 7,480 8 0.34°k - BRI 1813 Village Co-Op Inc 7,156 9 0.32°k - Baxley Robert & Annmarie TRS 6,179 10 0.28°k - Golf Terrace, LTD - - 12,085 Hacienda Village Co-op Inc. - - 4,972 Time Warner Entertainment - - 3,538 Southern Bell Telephone - - 3,094 Centex Homes - - 2,938 Tuskawilla Investors, Inc - - 2,601 Partners Preferred Yield Inc. - - 2,024 DR Horton, Inc. - - 2,001 Totals $ 141,950 6.39°k $ 48,821 Rank 2 3 1 4 5 6 7 8 9 10 Percentage of Total Taxable Assessed Value Source: Seminole County Property Appraiser (www.scpafl.org) 0.93°k 0.78°k 1.33°k 0.55°k 0.39°k 0.34°k 0.32°k 0.29°k 0.22°k 0.22°k 5.37°k 141 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Collections in Ended Total Tax Levy Percentage of Subsequent Percentage of September 30, for Fiscal Year' Amount z Levy Years Amount Levy 1999 $ 3,215,932 $ 3,097,939 96.33°k $ 25,225 $ 3,123,164 97.12°k 2000 3,453,596 3,333,199 96.51°k 2,817 3,336,016 96.60°k 2001 3,771,445 3,618,281 95.94°k 7,288 3,625,569 96.13°k 2002 4,467,419 4,324,807 96.81 °k 7,277 4,332,084 96.97°k 2003 5,277,940 5,048,670 95.66°k 9,160 5,057,830 95.83°k 2004 6,215,233 s 5,982,716 96.26°k 7,284 5,990,000 96.38°k 2005 6,748,179 s 6,546,002 97.00°k 11,385 6,557,387 97.17°k 2006 7,890,100 s 7,591,158 96.21°k 12,189 7,603,347 96.37°k 2007 8,820,491 s 8,475,408 96.09°k 2,214 8,477,622 96.11 °k 2008 7,442,693 s 7,145,070 96.00°k 11,318 7,156,388 96.15°k Note Gross taxes before discount of 1 °k - 4°k, depending on month paid; Source: Seminole County Property Appraiser (www.scpafl.org) z Source: Seminole County Tax Collector (www.seminoletax.org) s Includes voted debt service not to exceed .25 mills for Central Winds General Obligation Debt 142 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2008 Neither the City of Winter Springs Charter or Code, nor the Florida State Statutes limits the amount of debt the City of Winter Springs can issue. 143 CITY OF WINTER SPRINGS, FLORIDA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last Ten Fiscal Years Fiscal Year Population' Gross Assessed Bonded Less Debt Value z Debts Service Fund a 1999 29,220 $ 906,032,833 $ - $ 2000 30,860 972,980,638 - 2001 31,666 1,065,390,346 - 2002 32,082 1,184,740,270 3,400,000 2003 32,572 1,266,969,110 3,335,000 2004 32,955 1,365,985,321 3,270,000 2005 33,321 1,483,116,250 3,205,000 2006 34,621 1,661,073,712 3,140,000 2007 34,899 2,003,805,968 3,070,000 2008 34,639 2,220,522,082 3,000,000 Note Net Bonded Debt - $ - 23,275 3,376,725 24,260 3,310,740 53,373 3,216,627 46,967 3,158,033 51,743 3,088,257 47,572 3,022,428 46,254 2,953,746 Ratio of Net Bonded Debt to Assessed Value Net Bonded Debt per Capita 0.000°k $ - 0.000°k - 0.000°k - 0.285°k 105 0.261 °k 102 0.235°k 98 0.213°k 95 0.186°k 89 0.151 °k 87 0.133°k 85 Source: Synergos Technologies Inc.: PopStats at June 2008; Previous years statistics may have come from multiple sources includingEast Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research and Metro Orlando Economic Development Commission (www.orlandoedc.com). z Source: Seminole County Property Appraiser (www.scpafl.org) s Amount does not include special assessment bonds and revenue bonds a Amount available for repayment of limited general obligation bonds, which were issued in fiscal year 2002. 144 Q 0 J LL ,~ V Z Q' w >Z LL 0 ~_ U ~ I~ M O M V ~ ~ ~ O ~ ~ ~ (O M N N O N ~ ON .Q (6 U d ~ 0 (O 0 M 0 N 0 (O ~ m~ N N ~ ~ V V V O V Y ~ ~ ~ O U ~ d - N d ~, ~, ~ E ~ ~ ~ V M ~ O) V ~ O ~ ~ ~ V CEO CO ~ COO ~ V r M V O O) V V I~ d N V V - (6 O () H ~ ~ fA N V ~ (6 N J (6 Q (6 U ~ ~> U Q ~ ~ N ~ ~ V ~ V M N O) ~ O M N N V ~ ~ N I~ N ~ ~ ~_ m O O CO I~ CO ~ V M N Q ~ ~ N N N N N N N N N N a ~ ~ ~ ~ N ~ N ~ ~ ~ (~ C Ul > > ~ ~ 'Q m (~ N O O U ~ ~ °~ ~ v ~ ~ ~ ~ ~ N N ~ ~ ~ ~ O ~ Q N ~ CO ~ ~ ~ U X ~ ~ ~ U ~ N _ O ° CO LL 'O ~ ~ rn ~ v N o o m ~ ~ ~ ~ ~ ~ J 0 ~ a--~ J C . U ~ N 0 'J ~ ' ' N N N ~ ~ V M N ~ ~~ m N N N N N N N N U ~ ~ ~ N Q N N ~ ~ .U ~~ Q (6 -O ~ m N ' ' ' O V M M M M ~ N M O N M V ~ M ~ O M O O M (6 " (~ O N ~ ~ '~ C m ~ J 0 fA O ~ ~ O) O) V O) V V V V V ~ V ~ p~ ~ ~ m C N ~ ~ CO I~ M CO M ~ CO CO ~ ~ V O ~ ~ CO ~ O) O ~ O ~ ~ ~ ~ M N N ~ ~ 1 N ~ ~3 ~ O CO 'c V ~ ~ ~ ~ N ~ ~ ~ ~ r V V N ~ ~ o ~p M } ~ rn rn °0 o N 0 0 N 0 0 N 0 0 N 0 0 N 0 0 N 0 0 N 0 0 N 0 0 N ~ ~ ~ ~ W ~ ~ LL D N m J of 0 Z ~ i ~ ~ L i ~ ~ O ° 3 i E [ `o i ~ w ~ Z i 1 ~ 1 ~ 3 ~ L i 3 i n ' ~ ~ i 1 i l(7 V CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2008 (amounts expressed in thousands) Estimated Estimated Share of Percentage Overlapping Governmental Unit Debt Outstanding Applicable' Debt Overlapping Debt: Seminole County General Obligation Debt $ 19,915 6.63°k $ 1,320 Subtotal, overlapping debt Direct Debt: City of Winter Springs General Obligation Debt z 3,000 100°k 3,000 Total direct and overlapping debt $ 22,915 $ 4,320 Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. z The City of Winter Springs has a "limited" general obligation bond that is being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. 146 Q ~ W 0 ~ W ` (7 ~ z U } ~ W v a ~ N ~ z ~ j ~ H ~ H >Z_ w W J ~ ~ 0 ~ W ~ a~ U U ~ 4 v E ~ '~ ~ ~ ~ Q v Z ~ m ~ ~ > v F Q D ~ Nf v m n c~ 3 ~ ~ ~ r~ r~ co (9 m to ~ - Y ~ co co co r ~ F ~ v - c v N z°>~ c E O A c Q I w v a ~ - r~ ~ in v a' m ~LL v ~ a m i W ~ v ¢ U' ~ ~o M M U ~ _ _ _ _ _ _ _ _ _ _ _ ~ v ~ W ~ ~ X F ~ N N M M M M M M M a' «> LL w 0 m a a a°1' d U F ~- rv rv rv rv rv rv M rv rv ,, ~ a Z < D O W - M M M M V V V N N ~> - tD tD N tD h h N N h K LL w E ~°. a ~ N o . o z CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Personal Education Income Level in (amounts Per Capita Years of expressed in Personal Median Formal School Unemploy- Fiscal Year Population' thousands) Income' Age' Schooling' Enrollment z ment Rate s 1999 29,220 5,711 2.9°k 2000 30,860 785,726 25,461 37.2 13.68 5,776 3.0°k 2001 31,666 6,421 3.5°k 2002 32,082 6,508 5.8°k 2003 32,572 7,413 5.3°k 2004 32,955 7,476 4.6°k 2005 33,321 7,492 3.8°k 2006 34,621 979,428 28,290 39.3 13.97 7,342 3.2°k 2007 34,899 971,623 27,841 39.8 13.93 7,115 3.6°k 2008 34,639 1,028,951 29,705 40 13.72 6,804 5.0°k Data not available Note Source: Synergos Technologies Inc.: PopStats at June 2008; education calculation is based on segment of population 25 years and older. Previous years statistics may have come from multiple sources including University of Florida Bureau of Economic and Business Research and Metro Orlando Economic Development Commission (www.orlandoedc.com). z Source: Seminole County Public Schools 3 Source: US Department of Labor, Bureau of Labor Statistics -annual rate is an average of each month's unemployment rate for the Orlando-Kissimmee metropolitan area (http://data.bls.gov/cgi-bin/surveymost). Percentages have been restated for previous years. 148 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2008 1999 Employer Employees Seminole County School Board 1573 City of Winter Springs 242 Dearborn Electronics 137 Publix (Winter Springs Town Center) 125 Modern Plumbing 103 Tuscawilla Country Club 92 United States Post Office 49 EZ Yield 48 Dittmer Architectural Aluminum 45 The Grove Counseling Center 35 Percentage Percentage of Total City of Total City Rank Employment Employees Rank Employment 1 29.93°k 2 4.61°k 3 2.61°k 4 2.38°k 5 1.96°k 6 1.75°k 7 0.93°k 8 0.91°k 9 0.86°k 10 0.67°k Total 2,449 46.60°k Source: Annual Business Survey by City of Winter Springs with some extrapolations. Data not available Note The City of Winter Springs has an estimated 5,255 employees in the workplace with approximately 650 business establishments as of June 2008; Source - Synergos Technologies Inc.: PopStats at June 2008 149 CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-time Equivalent Employees as of September 30, Function 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Development Services' 6 6 6 6 8 10 4 10 10 10 10 General Government 32 35 36 38 34 4 36 4 43 4 44 44 44 Public Safety: Police Sworn Officers 50 a 50 a 50 a 50 a 60 a 64 64 70 70 70 Non sworn officers - - - - - - - - - - CiviliansZ 18 20 20 20 20 20 20 20 20 20 Fire Firefighters and officers 38 38 38 41 49 50 50 51 51 51 Civilians 1 1 1 1 1 2 2 2 2 2 Public Works 21 22 21 22 22 a 23 23 21 21 21 Culture and Recreation 20 20 20 19 20 21 22 22 22 22 Utilities 33 34 35 36 38 a 40 42 42 43 45 Stormwater 4 5 5 6 6 4 7 7 9 9 9 Total 223 231 232 239 258 273 283 291 292 294 Part-time Employees 25 22 24 24 * 23 * * * * Part-time FTEs s 11.09 12.42 14.53 15.38 Note * Data not available 1 Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety: Community Development -Building. 2 Police civilians include emergency communications center operations personnel. 3 FTEs -Full-time Equivalents; this statistic replaces part-time employee count. 4 Data has been restated. 150 Z O F U m Z -0 7 LL O t/1 ~ m N ~ r m ~ ~ (6 `m Q Q ~ Y (~ Q ~ U ~ LL ~_ ~ D F Z ~ O ~ J ~ Z U qF W a O _ - - _ o _ - ~ ~ - O ~ v m r '~ v C N - ~ Y ~ _ 2~ c -- 0 v _ c o ~ ~ m m LL f7 '~ ~ W ~ o ~ O ~ c_ = j g N ~ U O a V A - ~ - A Y ,n ,n ,n ,n a U A ~ ~ a ~ ~ ~ '~ - - v ~ ~ >. ~~ _ - E a 3 v v v E E E E c ~ ~ w~ "-' `v m Vi m- - E - N~--- 'a u - ¢' a U F m w z~ rn y y y ' c7 c7 c7 c7 y v a "-' z z~ ¢' ~ o F m m ~ a a~ ~ a a~ a a LL a LL 2 U ~ U C7 Z' 0 LL .Q >~ 0 T U N « N N N« of ~ LL~ O ~ ~ S O N I~ ~ N V ~ r (r0 O O H ~« V N M N O O (6 m N } ~« N N~« r ~ LL~ O ~ ~ r V N I~ O« ~~ N ~ N ~ V O U N r O ~ ~ V N ~ y N LL O N N J « N ~~« r ~ u~ co ~ ~ m N N r o« ~~ (O N ~ ~ ~ ~ O ~ ~ V N O O O A '- ~ N O ~ A ~ a 0 0 E ~ E r. m - 2' ~ E ~ ~ r. m ~ E -0 4 a L m ~ ~ ° ~ m m ~E o E ~ N ~ a ~ ~ ~ Q ~. ~ ~ ~ o ° m a~ °1 ~ ~ U z ~ j ~ ~ ~ E a~ T N ~ m ~ ~ ~ v m °~ (n LL N O ' N m m m ~ ~ N N N~ y o E m Y Y Y ~ O ~ ~ E a; n ~ N N E4 E~ O Q LL LL ~ (n (n (n F N A A N Y LL a a (n U >N ~> LL~ D N A~~ ~ (n U F U ii a = v ~ in m m 0 E `o O z « N N This page intentionally left blank. REPORTS ON INTERNAL CONTROL AND COMPLIANCE This page intentionally left blank. CEIZTII~IFD PUBLIC ACCOUNTANTS AND ADVISORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT O FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARD5 Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the financial statements of City of 1Mrnter Springs, Florida, as of and for the year ended September 30, 2008, and have issued our repnrt thereon dated March 23, 2009. We conducted nur audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Fiu~ancial Reporting In planning and performing nur audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures far the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion an the effectiveness of the City's internal control nver financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control aver financial reporting. A control deficiency exists when the design or aperafiion of a control does not allow management of employees, in the normal course of performing their assigned functions, to prevent or detect misstatements an a timely basis. A significant deficiency is a control deficiency, nr combination of cnntrnl deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is mare than a remote likelihood that a misstatement of the City's financial statements that is mare than inconsequential will not be prevented or detected by the City's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a materia! misstatement of the financial statements will not be prevented ar detected by the City's internal control. Our consideration of internal control over financial reporting was far the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and accordingly would oat necessarily disclose all significant deficiencies that are also considered to be material weaknesses. We did nafi identify any deficiencies in internal cnntrnl nver financial reporking that we consider to be material weaknesses, as defined above. ~CD1121~1fT ~AV1~ $~ C:onai~a;vY, ~,L~~ bE15 C:. Ro~3~~5r»; 5~~~(~~~~r. Sui~~~ (a35 ~ O~,i.n~~7o, F~.ofzi~>,~~ 32h[)1 'r~:€.ra~~~o~r: -!l)7-s~~3.~..Gt3fi ~ r,~x ~O7-G49-9339 > ~:n~n~~_; i~~-raCn~~~cn~iz~a3~~~~,lv~s.co~-~ \11~,11l1i-.3{ti: x'123\:141-. Chi )lik!~L \iE11~1<:il !!('I'. SI',1 ~1€I3,\ r\11k:i3 Et'.\1 I~tiii ~1~E 'l'I:: (.11~- C~r.12~S1~7 o.fl 1'1~I;1.I(' r1 ('l'1 )t'\'1 \\'i'ti I~'€.f 11111 ):1 I\5 FI 7'f'~'€'I:. C)I~ C~?'3. 7'I E~13'.311'1 :If E.II' :\4'('111.'\~1':1\3ti ~~ Cora~nliance ar~d Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect nn the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the City of Winter Springs in a separate letter dated March 23, 2009. They City's response to our finding identified in our audit is included in this report. We did oat audit the City's response, and accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the Gity Commission and the Auditor General of the State of Florida, and is not intended to be, and should not be used by anyone other than these specified parties. ~~i~ L~ri~ ~ (,~rrr~c 1.LC March 23, 2009 X54 ~ ~ ~~ r~r CERTI~'IEI~ pL7PiI.IC ACCOUNTANTS AND ADVISORS MANAGEMENT LETTER Honorable Mayor and City Commissioners Cify of Winter Springs, Florida We have audited the financial statements of the City of Winfer Springs, Florida, as of and for the fiscal year ended September 30, 2008, and have issued our report thereon dated March 23, 2009. We conducted our audit in accordance with United States generally accepted auditing standards; the standards applicable to financial audits contained in Government Audifing Standards, issued by the Comptroller General of the United States. We have issued our Report on Internal Control aver Financial Reparking and an Compliance and Other Matters. ©isclasures in that report, which is dated March 23, 2009 should be considered in conjunction with this management letter. Additionally, our audit was conducted in accnrdance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of Iocal governmental entity audits performed in the State of 1=lorida, and unless otherwise required to be reported in the report an compliance and internal controls, this letter is required to include the following information. • Section 10.554{1){i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual financial audit report. • Section 10.554(1)(1)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, lorida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Cify of Winfer Springs, Florida complied with Section 218.415, Florida Statutes. • Section 10.554{1)(1)3., Rules of the Auditor General, requires that we address in the management fetter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we have na current year comments. • Section 10.554{1){i)4., Rules of the Auditor General, requires that we address violations of provisions of contracts and grant agreements ar abuse that have an effect nn the financial statements that is less than material but more than inconsequential. In connection with our audit, we did oat have any such findings. i~c ~~rrz:~~~~ DAV1S & Cc~~a>A~y, LL,C (il)5 N, {ZOEIiy5b\ $'E~[2PiL'E', SUI"fSi 63S ^ C7RE.:~NDO, ~'I.OfZ1~A 328(71 '1~d::I.1lt'f1CSNli 'kO7~8~-~3-506 ^ 1'AX •417-G4c)~c}j3~) ° rSMA{L.: IA°I~E3 fi~~4ti~1~IR~~~1€'I'I)AVIS.C'C)\9 \il-\I k{I~,It,ti: 3".:E\.-~k~l. (~~~~\3f'.~~li,ti 1'12.\l; ~ E('1_ ti1.t~ kli ~\ • ,~,\I3~.4<li'.-1,\ E\tif 3~€t"IF. «I- ~~l'.1~1'111k~.1) I'i'k11. EI' :O('('SH 11:~\\I'ti 1~1.(172i?].-\ ~\ti3~1~1'i.'~'fl~: (~i~ C.I~R'37E-1:-11 I'1'nl E(' i\l'[(it-\'1~.\\'IS 155 Section 10.554(1)(1)5., Rules of the Auditor General, requires based on professional judgement, the reporting ofi the following matters that are inconsequential to the financial statements, considering both quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions or abuse that have occurred, or were likely to have occurred, and would have an imma#erial effect on the financial statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the financial statements; and {3) control deficiencies that are not significant deficiencies, including, but not limited fo; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. In connection with our audit, we had one such finding. Appropriations for the Road Improvements Special Revenue Fund and Hazard Mitigation Capital Projects Fund were in excess of anticipated revenue and prior years' fund balance. Section 10.554(1)(1)6., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This infiormation has been disclosed in the notes to the financial statements. Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503{1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of Winter Springs, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Section 10.554{1}(i)7.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the Cify of Winter Springs, Florida for the fiscal year ended September 30, 2007, filed with the Florida ©epartment of Financial Services pursuant to Section 298.32(1)(a}, Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2008. We determined that these two reports are in agreement. • Sections 10.554(1)(i)7.c. and 10.558(7), Rules of the Auditor General, require that we apply financial condition assessment procedures. In connection with our audit, we applied financial condition assessment procedures. It is management's responsibility to monitor the entity's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. This management letter is intended solely for the information of the Cify of Winter Springs, Florida and management, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. L~.i~rut ~~ ~ ~' L~CC March 23, 2009 156 ,~ F CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 April 16, 2009 McDirmit, Davis & Company, LLC 605 E. Robinson Street, Suite 635 Orlando, Florida 32801 Dear Sir or Madam: Your management comment related to fiscal year ended September 30, 2008 was well received by both the City Manager and the Finance Department. The comment represents an opportunity for improvement, which will be pursued in fiscal year 2009. Below is our response to your management comment as required by the Rules of the Auditor General of the State of Florida. Appropriations in Excess of Funds Available As mentioned in your Management Letter, appropriations for the Road Improvement Special Revenue Fund and Hazard Mitigation Capital Projects Fund were in excess of anticipated revenue and prior year's fund balance. Management acknowledges that although preliminary analysis of all city-wide funds was performed prior to the year-end budget amendment deadline, a more comprehensive analysis was delayed from our normal audit time frame whereby additional accounting entries were necessary but unable to be accounted for in the final budget amendment. The delay was a result of the extraordinary burdens placed on the Finance Department (along with other departments) such as the adoption of a city- wide Fire Fee/Special Assessment (in-house collection, manual monitoring and refund process), mandatory FEMA closeout audit and a more constricted deadline for the Distinguished Budget Award submission. Although, management acknowledges there were many challenges presented during fiscal year 2008, the budget amendment form has been revised to include a new section in order to ensure that the amended appropriations are less than or equal to anticipated revenue and prior year's ending fund balance. Additionally, a new audit schedule will be prepared by the Budget Analyst and reviewed by the Finance Director within 45 days of the fiscal year-end which compares the fiscal year Appropriations from Fund Balance for all funds to the prior year's audited ending fund balances. Any budgeted appropriation revealing a budgeted fund balance deficit will be rectified and included in the fiscal year-end budget amendment, if necessary. Sincerely, Kevin S ith City Manager Michelle Greco Finance Director 157 This page intentionally left blank. CEI2'I'IFI~D PUBLIC ACCOUNTANTS AND ADVISORS Honorable Mayor and City Commissioners City of Winfer Springs, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, of the City of Winfer Springs, Florida as of and far the year ended September 30, 2008, and have issued our report thereon dated March 23, 2009. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under U.S. Generally Accepted Auditing Standards, and„Government Auditing Standards As stated in our engagement letter dated August 28, 2007, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the interns! control of the City of Winter Springs, Florida. Such considerations were solely for the purpose of determining our audit procedures and oat to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financia! statements are free of material misstatement, we performed tests of the City of Winter Springs, Florida compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Planned Sco a and Timin of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our letter dated December 5, 2008. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Winter Springs, Florida are described in Note 1 to the financia! statements. No new accounting policies were adopted and the application of existing policies was not changed during 2008. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance ar consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred, except for the prior period adjustment for accreted interest payable discussed in Note 2 to the financial statements. Mci~[~~(~'t` D~vTS $c C011~PA~Y, L,L,C: (70~ T,_ R(')£SI~SON ~'I'f2ltki'E`, S(11'I'li C7,i5 n C)RE..;AVI~O, ~y.€.O{21fJ.~1 3250 1~~'.i.t-r~il~3v~_ ~O7-a~3-5~Uf~ ~ Fnx 4€?7-6~~9-9:~3~3 ~ ~a~ait.: in`~'~c~~~aac•~>~izair~~t>nv~s.co~~i \1 E.~11 fk:liti; ~'?Lll \FI-. C~1 I\II'~1\11 \ 7~i1,\('I~II'3 . ti'.'.i'I It)\' • ~~111.1171',x\ 1\ti171i ll-, C)9~~ C~1~12.~,3 E~I I'3) Pl''11I.EC' r\t'(Yll-\",, i\'l'~ • ~'1 L7R1~>~1 E~\til fl l-~3~: t)F- LEI. E2'3'3 E'11-.3) I~I'Il: II ~\l~(~C)1-?:7~\\11 158 Difficulties Encaunfered in Performing fhe Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Missfaterr-ents Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. in addition, Wane of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole, except far the prior period adjustment for accreted interest payable discussed in Note 2 to the financial statements. Disagreemenfs wifh Management For purposes of this letter, professional standards define a disagreement with tr~anagement as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements ar the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 23, 2089. Management Consultafions wifh Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" an certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on thane statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our icnowfedge, there were no such consultations with other accountants. Other Audif Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely far the use of management, the City Commission grid the Auditor General of the State of Florida and is oat intended to be and should oat be used by anyone other than these specified parties. Very truly yours, ~.l~7"ZL~' ~~ ~ ~9'1~0 ~Ci March 23, 2009 159 ~~ ~rf ~ ~~ CERTTFTED PUf3f.,tC ACCOUNTANTS ANb ADVISORS -March 23, 2009 Michelle Greco, Finance Director City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708-2799 Dear Michelle, During the fiscal year ended September 3a, 2008, the City of Winter Springs received both federal and state awards. They were nat sulaject to either a Federal ar Florida single audit since they did not meet the threshold for a single audit. Sincerely, ~J?~~~,v~mrtl.~u~t~ & Cernparu~,uC ~C`L~IRi~tT D,~v~s ~ CoN3i~~~v, LLC~; 5t)i E. I2E)t3~~st~V S'1-R€iai'I', SuE'C'E (i35 > f)Itt.A~~l3iJ, ~'L[)kil);1 3?5{l E "1'r:E,i:€~tEC)Nt; 407-h=13-.5~}f)fi • t~nx X07-6~9-9334) • l'u~-E,acE.: EvE'oL>~acE>tlz~~tt'E~,~vES.c:h~~ VIf.)13i1a:S: IhUA'-1d'ii (~t iPll'.A~~1?5 PNAt'I Il i- SF:C~f]G7R . rAd31~.1t if A~ LAtii€:-E-~tli L?i- ['IIR'YlPI1~4~ I'UBI-IC l~l'('UI'~'3A>'1'S l~l,O7id!):A IVS'fI'FI'ri'!: (.ll~ L'i,H'31i'lISi7 PCI41 1[' A~'('UVe fAV1S 1sa ~~NTER i ~~ SAZ u ~ CITY OF WINTER SPRINGS, FLORIDA Incorporated 1959 1126 EAST STATE ROAD 434 'cLoR-DP WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 April 16, 2009 AFFIDAVIT OF IMPACT FEE COMPLIANCE Impact Fees are assessed in accordance with Chapter 9: Land Development, Article VIII Impact Fees, of the City of Winter Springs Code of Ordinances. Impact fee collections, expenditures and accounting are provided for in separate accounting funds and comply with Florida Statute 163.31801. Michelle Greco Finance Director 161