Loading...
HomeMy WebLinkAbout2007 04 09 Regular 603 Comprehensive Annual Financial Report COMMISSION AGENDA ITEM 603 CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X April 9, 2007 Meeting MGR~ !DEPT~ Authorization REQUEST: The Finance Department Is Requesting City Commission Acceptance Of The Comprehensive Annual Financial Report (CAFR), As Presented, For The Fiscal Year Ended September 30, 2006. PURPOSE: The presentation by the City Auditors of the Comprehensive Annual Financial Report for the fiscal year ended September 30,2006. 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. RECOMMENDATION: Acceptance of the CAFR, as presented, for the fiscal year ended 9/30/06, by the City Commission. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/06 including the audited financial statements and the audit opinion. COMMISSION ACTION: This page intentionally left blank. City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2006 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, 2006 Page I. 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 3-17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets 18 Statement of Activities 19 Fund Financial Statements: Balance Sheet - Governmental Funds 20-21 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 22-23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund 25-26 Public & Communications Service Tax Special Revenue Fund 27 Electric Franchise Fee Special Revenue Fund 28 Solid Waste/Recycling Special Revenue Fund 29 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 i CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2006 Page II. Financial Section - Continued: Notes to Financial Statements 37-65 Required Supplementary Information 66 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 67 Public Facilities Capital Projects Fund 68 Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds 69-75 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 76-83 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds 84-101 Debt Service Funds 102-107 Capital Projects Funds 108-115 Capital Assets Used in the Operation of Governmental Funds: Schedule by Function and Activity 116 III. Statistical Section: Net Assets by Component 117 Changes in Net Assets 118-119 Governmental Activities Tax Revenues by Source 120 Fund Balances of Governmental Funds 121 Changes in Fund Balances of Governmental Funds 122 Assessed Value and Estimated Actual Value of Taxable Property 123 Property Tax Rates, Direct and Overlapping Governments 124 Special Assessment Billings and Collections 125 Principal Property Taxpayers 126 Property Tax Levies and Collections 127 Legal Debt Margin 128 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 129 ii CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - Continued Year Ended September 30, 2006 Page III. Statistical Section - Continued: Ratio of Outstanding Debt by Type 130 Direct and Overlapping Governmental Activities Debt 131 Pledged-Revenue Coverage 132 Demographic and Economic Statistics 133 Principal Employers 134 Full-time Equivalent City Government Employees by Function 135 Operating Indicators by Function 136 Capital Asset Statistics by Function 137 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 138-139 Management Letter and Response 140-142 Affidavit of Impact Fee Compliance 143 iii This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 March 19, 2007 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, 2006. 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, 2006, 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, 2006, 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 Government 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 34,600. 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. 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, the Electric Franchise Fee Special Revenue Fund and the Solid Waste/Recycling Special Revenue Fund, these comparisons are presented on pages 25-29 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 67. 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. The City's total assessed valuation for real and personal property (net of exemptions) increased 12.0% from the prior year and 122.0% since fiscal year 1996. The increase in valuations and millage resulted in an increased total tax levy of $1,141,921 over last year and $5,120,348 since 1996. The City's population has increased 30% from that of ten years ago. Local indicators still point to a continued trend of growth as the City works with v builders, developers and residents for both commercial and residential development. This increased growth helps the City maintain a moderate property tax rate, which was at 4.750 mills during fiscal year 2006 (tax year 2005) and includes 0.1374 mills of voted debt service for Central Winds General Obligation debt. Presently, Florida’s newly elected Governor, the House of Representatives and the Senate are working to change the State’s property tax system. Currently there are many proposals being discussed, many of which could dramatically impact local government’s revenue sources which could in turn impact future service levels. It is too soon to tell what impact these potential changes will have on the City’s fiscal year 2008 budget. Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan (CIP) during fiscal year 2004. The CIP is currently being updated with an anticipated completion in Summer 2007. 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 CIP 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. The City has a policy 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. Major Initiatives. During fiscal year 2007, the City anticipates the following projects: completion of the Public Works/Utilities Compound construction project at approximately 33,000 square feet and a total price of $4,500,000. Construction is expected to be completed by March 30, 2007; begin Senior Center Expansion and Therapy Pool. Construction is expected to take 10 months and a cost of $1,800,000; finalize plans on expansion of City Hall by approximately 5,000 square feet and a total price of $2,100,000. Construction is expected to take 9 months once construction begins; begin year three of a three year Records Management Project for public records documents and research; begin year three of a four year Pension Plan enhancement program, by adding 0.5% to the employer contribution to reduce the amortization period from 30 years to 15 years as well as adding a 1.0% retroactive benefit for service prior to October 1, 2000; replace fire engine 26 at a cost of $340,000; numerous road improvements projects at $2,800,000, such as Winter Springs Boulevard, Doran Phase 2A, Town Center streetscape, Orange Avenue, Tree Swallow and Michael Blake Boulevard; vi CITY OF WINTER SPRINGS,FLORIDA LIST OFPRINCIPAL OFFICIALS September30,2006 ELECTED OFFICIALS MAYORJohn F. Bush DEPUTY-MAYOR/COMMISSIONERMichaelS.Blake COMMISSIONERDonaldGilmore COMMISSIONERJoanneKrebs COMMISSIONERSallyMcGinnis COMMISSIONERRobert S. Miller APPOINTED OFFICIALS CITY MANAGERRonald McLemore CITY CLERKAndreaLorenzo-Luaces FINANCE DIRECTORMichelleGreco INFORMATION SERVICESJoanne Dalka GENERAL SERVICESKevinSmith POLICE CHIEFDaniel Kerr FIRE CHIEFTimothyLallathin UTILITY/PUBLIC WORKS DIRECTORKipton Lockcuff COMMUNITY DEVELOPMENT DIRECTORRandy Stevenson PARKS AND RECREATION DIRECTORChuckPula LEGAL COUNSEL Anthony Garganese Brown, Garganese,Weiss& D’Agresta, P.A. FINANCIAL ADVISOR David Moore PublicFinancial Management, Inc. AUDITORS McDirmit, Davis & Company,LLC ix City of Winter Springs Organizational Chart This page intentionally left blank. FINANCIAL SECTION This page intentionally left blank. 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, 2006. 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 $78,075,306 (net assets). Of this amount, $23,221,451 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. The government’s total net assets increased by $10,281,787 or 15%. The increase in total net assets is largely attributed to: expenditures for the construction of the Public Works/Utility Compound recorded in the Public Facilities Capital Projects Fund (21%); lower than anticipated expenditures in the General Fund (19%); and increased permit and impact fee revenues from increased construction activity in the Development Services (11%) and Impact Fee Funds (Fire, Parks, Police, Public Facilities and Transportation) (11%), respectively. As of the close of the current fiscal year, the City of Winter Springs’ governmental funds reported combined ending fund balances of $21,914,453. Approximately 93% of this total amount, or $20,401,230, 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 $7,801,674, or 44% of total general fund expenditures. The City of Winter Springs’ total debt decreased by $1,051,868 (2%) during the current fiscal year. The decrease was the result of principal payments on existing debt. 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. TheStatement 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. 3 TheStatement 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 18-19 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. 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 38 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 & Communications Service Tax Special Revenue Fund, Electric Franchise Fee Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, TLBD Debt Service Fund and Public Facilities Capital Projects Fund, all six of which are considered to be major funds. Data from the other 32 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. 4 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, the Public & Communications Service Tax Special Revenue Fund, Electric Franchise Fee Special Revenue Fund and Solid Waste/Recycling Special Revenue Fund to demonstrate compliance with this budget on pages 25-29. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund, Public Facilities Capital Projects Fund and the nonmajor funds on pages 67-115. The basic governmental fund financial statements can be found on pages 20-29 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 37-65 of this report. Required Supplementary Information (RSI). RSI can be found on page 66 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 67-115 of this report. 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 $78,075,306 at the close of the most recent fiscal year. Slightly over half ($41,163,699 or 53%) 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. 5 Net assets that are subject to external restrictions as to how they may be used total $13,690,156 (17%). The remaining balance of unrestricted net assets ($23,221,451 or 30%) may be used to meet the government’s ongoing obligations to citizens and creditors. At September 30, 2006, 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 18. City of Winter Springs Statement of Net Assets As of September 30 Governmental Activities Business-type Activities Total Primary Government 200620052006200520062005 Assets: Current and other assets $27,330,141$21,588,839$10,449,100$8,379,954$37,779,241$29,968,793 Restricted assets 106,982106,9823,457,0313,341,1393,564,0133,448,121 Capital assets 49,983,36547,723,54434,590,01235,158,60584,573,37782,882,149 Total assets 77,420,48869,419,36548,496,14346,879,698125,916,631116,299,063 Liabilities: Current liabilities 2,764,3422,574,5111,776,4701,755,5424,540,8124,330,053 Long term liabilities 20,403,92420,609,96522,053,09022,767,72642,457,01443,377,691 Other liabilities 106,982106,982736,517690,818843,499797,800 Total liabilities 23,275,24823,291,45824,566,07725,214,08647,841,32548,505,544 Net assets: Invested in capital assets, net of related debt 29,400,81326,522,81011,762,88611,520,87941,163,69938,043,689 Restricted11,077,9929,730,4822,612,1642,500,09913,690,15612,230,581 Unrestricted13,666,4359,874,6159,555,0167,644,63423,221,45117,519,249 Total net assets $54,145,240$46,127,907$23,930,066$21,665,612$78,075,306$67,793,519 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 19. Note that total net assets increased by $10,281,787 in fiscal year 2006, compared to an increase of $3,304,965 in fiscal year 2005. Governmental activities increased net assets by $8,017,333 in fiscal year 2006 compared to an increase of $4,259,203 in 2005.This increase can largely be attributed to: expenditures for the construction of the Public Works/Utility Compound in the Public Facilities Capital Projects Fund (26%); lower than anticipated expenditures in the General Fund (24%); and increased impact fee revenues from increased construction activity in the Impact Fee Funds (Fire, Parks, Police, Public Facilities and Transportation) (14%). 6 Business-type activities increased net assets by $2,264,454 in fiscal year 2006 compared to a decrease of $954,238 in 2005. This increase can largely be attributed to increased permit fee revenues from increased construction activity in the Development Services Fund (50%). The Water and Sewer fund benefited from $280,186 in capital contributions from developers. 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. Note that the first graph depicts governmental program-specific revenues and expenses. For this graph, the revenue does not include property taxes, franchise fees, utility taxes, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. (The remainder of this page intentionally left blank.) 7 City of Winter Springs Changes in Net Assets For The Year Ended September 30 Governmental Activities Business-type Activities Total Primary Government 200620052006200520062005 Revenues: Program revenues: Charges for services $6,112,381$4,117,424$11,467,644$9,017,924$17,580,025$13,135,348 Operating grants and contributions167,5022,176,595 69,054 348,496236,5562,525,091 Capital grants and contributions 2,459,0681,961,7641,329,148975,4633,788,2162,937,227 General revenues: Property taxes 7,383,6126,198,4277,383,6126,198,427 Franchise and utility taxes 5,751,3644,983,8025,751,3644,983,802 Intergovernmental - unrestricted3,970,9583,680,6693,970,9583,680,669 Investmentincomeand miscellaneous1,708,015686,636499,311272,2252,207,326958,861 Total revenues 27,552,90023,805,31713,365,15710,614,10840,918,05734,419,425 Expenses: General government 7,731,5675,786,2887,731,5675,786,288 Public safety 10,015,6649,137,63810,015,6649,137,638 Physical environment 2,037,7495,560,7192,037,7495,560,719 Culture and recreation 2,393,2102,264,8172,393,2102,264,817 Interest and other fiscal charges on long-term debt 709,260763,608709,260763,608 Water and Sewer 6,239,0506,000,2486,239,0506,000,248 Development Services 678,897627,509678,897627,509 Stormwater 830,873973,633830,873973,633 Total expenses 22,887,45023,513,0707,748,8207,601,39030,636,27031,114,460 Increase in net assets before transfers4,665,450292,2475,616,3373,012,71810,281,7873,304,965 Transfers3,351,8833,966,956 (3,351,883) (3,966,956) - - Increase (decrease) in net assets8,017,3334,259,203 2,264,454(954,238) 10,281,7873,304,965 Net assets - October 1 46,127,90741,868,70421,665,61222,619,85067,793,51964,488,554 Net assets - September 30 $54,145,240$46,127,907$23,930,066$21,665,612$78,075,306$67,793,519 8 Governmental Program-Specific Revenues and Expenses 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 GeneralPublic SafetyPhysicalCulture &Interest on GovernmentEnvironmentRecreationLong-term Debt RevenuesExpenses 9 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, 2006, the City of Winter Springs’ governmental funds reported combined ending fund balances of $21,914,453, an increase of $4,626,785 over the prior year. Approximately 93% or $20,401,230 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 $7,801,674, while total fund balance reached $8,256,913. 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 balancerepresent 44% and 47% respectively, of total General Fund expenditures. The fund balance of the City of Winter Springs’ General Fund increased by $2,405,565 during the current fiscal year or $1,710,244 more than the prior year’s appropriation to Fund Balance. This can be explained by the following: ad valorem tax revenues increased $1,185,185, investment income increased $233,368, transfers in increased $851,390 mainly due to increased Electric Franchise Fee and Public Utility Tax revenue gains. The City’s expenditures for Executive Government increased by $30,000 due to an increased expense reimbursement for the Mayor and City Commissioners. General Government expenditures decreased by $79,000, due to completion of the special litigation efforts associated with a lawsuit against Seminole County relating to Charter and annexation issues that completed during the year. General Services expenditures increased by $104,000, due to increased insurance premiums and the hiring of a City Hall operator. Community Development expenditures increased $225,000 mainly due to increased streetlightingand ground maintenance costs. Police expenditures increased $780,000 largely due to the hiring of sixnew police officers and relatedcapital equipment purchases,four new motorcycles and a radio system upgrade. Fire expenditures decreased $160,442 mainly due to reduced capital expenditures. Public Works transferred the function of Urban Beautification and related duties and expenditures to the Community DevelopmentDepartment in mid-2005, which explains their large decrease which is offset in Community Development. Parks and Recreation expenditures decreased $350,000 mainly due to reduced capital expenditures. The Emergency and Disaster Relief Special Revenue Fund, which is no longer a major fund, has not been closed as the City awaits final determination regarding the two open appeals: 11 Stump removal expense in the amount of $237,680; and, Private roads and/or gated community debris removal expense in the amount of $586,855 (received denial of appeal by FEMA on May 22, 2006; City submitted second appeal on July 14, 2006). The appeal for stump grinding expense of $10,500 was denied by FEMA on May 22, 2006 and not appealed a second time by the City. The City has withdrawn the appeal for bagged debris expense of $22,225 and will try to justify that the expense should be allowable during the close-out process. FEMAwill not begin the close-out process untilall appeals have been reviewed by their staff and a determination has been made. Once the determination has been received from FEMA on the appeals, the City may submit for the required final inspections and the Emergency and Disaster Relief Special Revenue Fund may be closed. 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 $6,956,956, and total net assets increased $825,016 from $16,670,247 at September30, 2005 to $17,495,263 at the end of the current fiscal year. The results for fiscal year 2006 include $280,186in capital assets contributed by developers. This fund had a decrease in net assets in fiscal 2005 of $785,992, which included $453,435 in capital assets contributed by developers. Rates remained unchanged in fiscal year 2006. A new rate study is planned for fiscal year 2007. The Development Services Fund net assets increased $1,129,774 from $781,838 at September30, 2005 to $1,911,612 at the end of the current fiscal year. This fund was established in fiscal year 2003. Prior to 2003, this activity was captured in the General Fund. The increase in net assets for the current fiscal year is higher then the prior year’s change in net assets due to an increase in permit revenues which resulted from a large number of constructionprojects. A rate study was performed in fiscal year 2003 with the inception ofthis fund. The rates in this fund were last adjusted in August 2005 with the adoption of Resolution 2005-29. The Stormwater Utility Fund net assets increased $309,664 from $4,213,527 at September30, 2005 to $4,523,191 at the end of the current fiscal year. This increase in net assets is not consistent with the prior year’s decrease in net assets of $14,722 due mainly to a rate increase of 69% in June 2005. General Fund Budgetary Highlights Differencesbetween the original General Fund budget and the final amended General Fund budget resulted in an increase of $63,195 in the appropriation to fund balance from $10,719 per the original budget to $73,914 in the final budget. The majority of the increased appropriationcan be summarized as follows: $278,000and $340,000 increase in transfers in from the Public and Communications Service Tax and Electric Franchise Fee Special Revenue Funds, respectively. 12 $100,468 increase in Capital Lease proceeds as well as an increase in Police Departmentexpenses for purchase of six new police vehicles. $106,000 supplemental appropriation for special litigation efforts associated with a lawsuit with Seminole County relating to Charter and annexation issues, a re- writing the pension plan document and additional actuarial studies related to the pension plan. $72,000 for CommunityDevelopment projects that were carried forward into fiscal year 2006 from fiscal year 2005. $27,000 supplemental appropriation for CommunityDevelopment for increased streetlighting cost. $193,000 supplemental appropriation for KIVA special projects that is offset by an increase in transfers of $116,000 from Development Services. $26,000 for Information Systems projects thatwere carried forward into fiscal year 2006 from fiscal year 2005. $145,000 in transfers out to Hazard Mitigation Grant Program Capital Project Fund for City match for grants. $70,000 in transfers outs to Parks Impact Fee Special Revenue Fund for the Miracle Playground. $24,000 supplementalappropriation in Executive for contract employee in City Clerk department. $43,000 supplementalappropriations in General Government for theGolf Course and Town Center feasibility studies. The actual results of the General Fund for the year show an appropriation to fund balance of $2,405,565 compared to a final budgeted appropriation from fund balance of $73,914. The favorable variance of $2,331,651 is primarily comprised of the following: $143,000 favorable variance in Sales Tax revenues. $349,000 favorable variance in Investment Income as interest rates increased. $322,000 favorable variance across all departments due to a new presentation requirement of Compensated Absences in the Financial Statements, with the largest of variances being composed of $45,000 in Executive, $24,000 in General Services, $81,000 in Police and $159,000 in Fire Departments. $50,000 favorable variance in General Government due to the delay of Code Enforcement Court and lower than anticipated consulting fees. $129,000 favorable variance in Finance and Utility Billing due to position vacancies and lower entry salaries on new hire ($86,000) as well as lower than anticipated Utility Billing expenses ($43,000) due to lower customer base growth than expected. The favorable variance in Utility Billing was offset by reduced transfers in of $85,000 from the Water and Sewer Utility Fund. $91,000 favorable variance in General Services for lower than anticipated insurance settlement costs. $487,000 favorable variance in Information Systems due to delay in scanning project ($75,000); position vacancies ($50,000) and their associated projects not beingcompleted($129,000); capital costs (KIVA project) rolled into fiscal year 2007 ($53,000); and lower than anticipated operating expenses ($180,000). $75,000 favorable variance in CommunityDevelopment due to lower than anticipatedexpenses in Urban Beautification, such as streetlighting and grounds maintenance costs. 13 $103,000 favorable variance in Police due to lower than anticipated expenses ($72,000), such as repair and maintenance, vehicles and capital equipment; and capital costs rolled into fiscal year 2007 ($31,000) for expenses related to a vehicle and new equipment. $305,000 favorable variance in Fire resulted from firefighters who did not realize theirbudgeted position upgrades and/or paramedic incentives and from vacancies throughout the year in Operations ($275,000) and lower than anticipated expenses ($30,000). $123,000 favorable variance in Public Works due to position vacancies throughout the year ($71,000) and lower than anticipated expenses ($52,000). $140,000 favorable variance in Parks and Recreation resulted from budgeted expenditures that were rolled over to fiscal year 2007 for Fall Event 2006 ($24,000); position vacancies throughout the year ($50,000); and lower than anticipatedexpenses ($66,000). $390,000 unfavorable variance in Transfers In due to Information Systems projects not being completed due to position vacancies ($131,000), Utility Billing position vacancies and lower than anticipated expenses ($85,000), Hazard Mitigation Grant Program repayment ($145,000) did not occur because project has not started. $145,000 favorable variance in Transfers Out due to the Hazard Mitigation Grant Program loan ($145,000) did not occur because project has not started. The comparison of budgeted results to actual results for the General Fund is shown on pages 25-26. Capital Assetand DebtAdministration Capital assets. The City of Winter Springs’ investment in capital assets for its governmental and business-type activitiesas of September 30, 2006 amounts to $84,573,377 (net of accumulated depreciation), for an increase of $1,691,228 over the prior year. This investment in capital assets includes land,buildings,improvements, machineryand 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 2.0% (a 4.7% increase for governmental activities and a 1.6% decrease for business-type activities). Major capital asset events during the current fiscal year included the following: Completion and capitalization of the Doran Drive and 434 traffic signal totaling $487,114 ($18,014 of which was spent in 2003; $14,630 of which was spent in 2004; $14,499 of which was spent in 2005); Completion and capitalization of the Gary Hillery Drive Improvements totaling $183,295; Completion and capitalization of the turn lanes on SR 434 for Moss Road totaling $132,174 ( $21,053 of which was spent in 2004; $4,602 of which was spent in 2005); Completion and capitalization of the Central Winds Park – Sod/Irrigation/Equipment project totaling $395,571 ($2,831 of which was spent in 2004; $339,976 of which was spent in 2005); Continued construction of the Utility/Public Works Compound totaling $2,462,020(scheduledcompletion in Spring 2007); Continued construction of Well No. 4 totaling $547,195; 14 Continuedwork on the electrical improvements at Water Treatment Plant No. 3 totaling $131,561; Capitalization of contributed water and sewer lines totaling $280,186; Completion of sewer main relining totaling $195,336. Additional information on the City of Winter Springs’ capitalassets can be found inNote 6 on pages 51-52 of this report. City of Winter Springs Capital Assets (Net of Depreciation) Asof September 30 GovernmentalActivitiesBusiness-type ActivitiesTotal Primary Government 200620052006200520062005 Land$9,848,716$9,760,401$5,344,916$5,344,916$15,193,632$15,105,317 Buildings3,111,6923,242,258361,703386,8463,473,3953,629,104 Improvementsother thanbuildings8,888,7968,064,69827,288,22228,030,20736,177,01836,094,905 Machineryand equipment2,532,6992,432,732887,915937,4143,420,6143,370,146 Infrastructure22,200,41722,779,42322,200,41722,779,423 Constructionin progress3,401,0451,444,032707,256459,2224,108,3011,903,254 Total$49,983,365$47,723,544$34,590,012$35,158,605$84,573,377$82,882,149 Long-term debt. At September 30, 2006, the City of Winter Springs had total debt outstandingof $44,309,891, down $1,051,868 from $45,361,759 at September 30, 2005. Totalbonded debt of the City at the end of the current fiscal year was $42,493,981, for a decrease of $1,505,852 over the prior year. Of the amount of total bonded debt, $3,140,000comprises debt backedby the full faith and credit of the governmentand $2,090,000 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 2006. During the fiscal year the following activity occurred on the City’s Notes: Capital Improvement Revenue Note Series 2004 in the amount of $224,730 was paid off. Capital Improvement Revenue Note Series 2006 in the amount of $430,000 was added for the TLBD Phase II Improvement project with a principal reduction during the year of $93,400. A capital lease in the amount of $104,443 for twenty-eight public safety vehicles was paid off. 15 A capital lease in the amount of $100,468 for six public safety vehicles was added. Both the City of WinterSprings’ 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. There are no limitations placed on the amount of debt theCity 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 53-58 of this report. City of Winter Springs Long Term Debt Asof September 30 Governmental ActivitiesBusiness-typeActivitiesTotal Primary Government 200620052006200520062005 Improvement Refunding Revenue Bonds, Series 1999 $5,928,970$6,368,970$5,928,970$6,368,970 Water & SewerRefunding Revenue Bonds, Series 2000 $6,824,191$6,864,191 6,824,191 6,864,191 Special Assessment Revenue Bonds, Series 2001 2,090,0002,135,000 2,090,000 2,135,000 Water & SewerRefunding Revenue Bonds, Series 2001 5,225,0005,450,000 5,225,000 5,450,000 Water & SewerRefunding Revenue Bonds, Series 2002 11,675,00012,280,000 11,675,00012,280,000 Limited General Obligation Bonds, Series2002 3,140,000 3,140,0003,205,0003,205,000 Improvement Refunding Revenue Bonds, Series 2003 8,575,0008,725,000 8,575,000 8,725,000 Capital Improvement Revenue Note, Series 2004 -224,730 - 224,730 Capital Improvement Revenue Notes, Series 2004 A 478,629 478,629509,454509,454 Capital Improvement Revenue Note, Series 2006336,600 - - - 336,600 - Capital Lease 100,468104,443 - - 100,468 104,443 Compensated Absences 900,213 749,249377,883150,964145,416523,299 Adjustments for Issuance Discounts and DeferredRefunding Costs (67,115)(71,863)(897,065)(956,465) (964,180)(1,028,328) Total$21,331,801$21,578,617$22,978,090$23,783,142$44,309,891$45,361,759 16 Economic Factors andNextYear’s Budgets andRates The City considered many factors during the preparation of the fiscal year 2007 budget. Approximately, 68% of the General Fund’s 2007 budget is attributable to personnel costs. This is an arena that requires significant budget dollars ($1.2 million) just to account for the annual increases due to merit, health insurance, and pension (graduated increase of 1.5% in 2007). Increases in recurring revenues were anticipated to occur primarily due to property tax valuations, increased transfers from the Public and Communications Services Tax and Electric Franchise FeeSpecial Revenue Funds, and modest gains from State revenues. As a result of personnel costs being tempered by recurring gains it was possible to reduce the operating millage rate from 4.6126 to 4.2919. Reflectedin the 2006-2007 budget adopted on September 25, 2006 is an appropriation from fund balance of $33,933. The Central Winds voted debt service millage rate for fiscal year 2007 was reduced from 0.1374 to 0.1100. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs’ finances for all those with an interest in the government’s finances. Questions concerningany of theinformation provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is available at the City of Winter Springs’ website located at:www.winterspringsfl.org. 17 This page intentionally left blank. BASIC FINANCIAL STATEMENTS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS September 30, 2006 Primary Government GovernmentalBusiness-type ActivitiesActivitiesTotal Assets: Cash and cash equivalents22,527,081$ 8,079,404$ 30,606,485$ Investments- 698,250 698,250 Receivables, net1,476,647 1,278,095 2,754,742 Inventories - at cost19,393 15,295 34,688 Prepaid costs439,616 18,475 458,091 Restricted assets: Cash and cash equivalents106,982 1,486,485 1,593,467 Investments- 1,970,546 1,970,546 Bond issuance costs217,224 359,581 576,805 Capital assets not being depreciated13,249,761 6,052,172 19,301,933 Capital assets being depreciated, net of accumulated depreciation)36,733,604 28,537,840 65,271,444 Receivables, long-term2,650,180 - 2,650,180 Total Assets77,420,488 48,496,143 125,916,631 Liabilities: Accounts payable and other current liabilities1,496,876 376,502 1,873,378 Accrued interest payable287,676 474,968 762,644 Unearned revenue51,913 - 51,913 Liabilities payable from restricted assets106,982 736,517 843,499 Noncurrent liabilities: Due within one year927,877 925,000 1,852,877 Due in more than one year20,403,924 22,053,090 42,457,014 Total Liabilities23,275,248 24,566,077 47,841,325 Net Assets: Invested in capital assets, net of related debt29,400,813 11,762,886 41,163,699 Restricted for: Capital projects8,764,411 - 8,764,411 Debt service1,057,984 1,970,546 3,028,530 Physical environment1,194,486 641,618 1,836,104 Public safety61,111 - 61,111 Unrestricted13,666,435 9,555,016 23,221,451 Total Net Assets54,145,24$ 23,930,06$ 78,075,30$ 066 The accompanying Notes to Financial Statements are an integral part of these statements. 18 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA BALANCE SHEE T GOVERNMENTAL FUNDS September 30, 2006 Special Revenue Public &Solid CommunicationsWaste/TLBD GeneralService TaxRecyclingDebt Service Assets: Cash and cash equivalents8,399,762$ -$ 678,229$ 164,008$ Receivables, net176,431 130,087 8,334 1,451 Inventories, at cost19,393 - - - Due from other funds101,904 - - - Prepaid costs435,846 - - - Special assessments receivable- - - 2,040,000 Judgments receivable- - - - Restricted assets: Cash and cash equivalents106,982 - - - Total Assets9,240,318$ 130,087$ 686,563$ 2,205,459$ Liabilities and Fund Balances: Accounts payable198,227$ 2,086$ 168,334$ 3,375$ Accrued liabilities425,886 - - - Retainage payable202,867 - - - Due to other funds- 101,904 - - Deferred revenue- - - 2,040,000 Unearned revenue49,443 - - - Payable from restricted assets106,982 - - - Total Liabilities983,405 103,990 168,334 2,043,375 Fund balances: Reserved: Inventories and prepaid costs455,239 - - - Debt service- - - 162,084 Unreserved, reported in: General fund7,801,674 - - - Special revenue funds- 26,097 518,229 - Capital projects funds- - - - Total fund balances8,256,913 26,097 518,229 162,084 Total Liabilities and Fund Balances9,240,318$ 130,087$ 686,563$ 2,205,459$ 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. 20 PublicOtherTotal FacilitiesGovernmentalGovernmental Capital ProjectsFundsFunds $ 10,767,4722,517,610$ 22,527,081$ 1,160,344- 1,476,647 -- 19,393 -- 101,904 3,770- 439,616 550,180- 2,590,180 60,000- 60,000 -- 106,982 $ 12,541,7662,517,610$ 27,321,803$ $ 128,328364,473$ 864,823$ 3,300- 429,186 -- 202,867 -- 101,904 1,609,675- 3,649,675 2,470- 51,913 -- 106,982 1,743,773364,473 5,407,350 -- 455,239 895,900- 1,057,984 -- 7,801,674 6,225,441- 6,769,767 3,676,6522,153,137 5,829,789 10,797,9932,153,137 21,914,453 $ 12,541,7662,517,610$ 49,983,365 3,649,675 (21,619,477) 217,224 $54,145,240 21 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2006 Special Revenue Public &ElectricSolid CommunicationsFranchiseWaste/ GeneralService TaxFeeRecycling Revenues: Taxes and special assessments7,432,399$ 3,831,569$ 1,775,460$ 94,532$ Licenses and permits177,199 - - - Intergovernmental revenues4,281,397 - - 53,509 Charges for services527,136 - - 2,152,327 Fines and forfeitures242,152 - - - Investment income450,603 - 5,098 21,131 Miscellaneous89,964 - - 3,176 Total revenues13,200,850 3,831,569 1,780,558 2,324,675 Expenditures: Current: General government4,981,635 3,107 - - Public safety8,831,793 - - - Physical environment1,005,383 - - 1,879,292 Culture and recreation1,974,619 - - - Debt service: Principal retirement104,443 - - - Interest and fiscal charges2,951 - - - Issuance costs- - - - Capital outlay: General government337,856 - - - Public safety367,981 - - - Physical environment1,857 - - - Culture and recreation45,192 - - - Total expenditures17,653,710 3,107 - 1,879,292 Excess (Deficiency) o f Revenues Over Expenditures 3,828,462(4,452,860) 1,780,558 445,383 Other Financing Sources (Uses) Transfers in6,877,744 - - - Transfers out(119,787) (3,802,365) (1,780,558) (209,912) Capital Leases100,468 - - - Note issued- - - - Net other financing sources (uses)6,858,425 (3,802,365) (1,780,558) (209,912) Net Change in Fund Balances 26,0972,405,565 - 235,471 Fund Balances - Beginning -5,851,348 - 282,758 Fund Balances - Ending $ 26,0978,256,913$ -$ 518,229$ The accompanying Notes to Financial Statements are an integral part of these statements. 22 PublicOther Total TLBDFacilitiesGovernmentalGovernmental Debt ServiceCapital ProjectsFundsFunds $ -51,016$ 720,680$ 13,905,656$ -- 2,043,505 2,220,704 -- 1,033,605 5,368,511 -- 413,805 3,093,268 -- 78,230 320,382 165,364110,998 465,084 1,218,278 -472 452,513 546,125 165,364162,486 5,207,422 26,672,924 -- 50,006 5,034,748 -- 332,380 9,164,173 -7,500 468,019 3,360,194 -- 3,460 1,978,079 -45,000 1,003,955 1,153,398 -106,696 590,609 700,256 -- 16,933 16,933 2,196,636- 145,239 2,679,731 -- 17,155 385,136 -- 1,247,185 1,249,042 -- 161,608 206,800 2,196,636159,196 4,036,549 25,928,490 (2,031,272)3,290 1,170,873 744,434 1,482,80052,502 1,585,802 9,998,848 -- (734,343) (6,646,965) -- - 100,468 -- 430,000 430,000 1,482,80052,502 1,281,459 3,882,351 (548,472)55,792 2,452,332 4,626,785 2,701,609106,292 8,345,661 17,287,668 $ 2,153,137162,084$ 10,797,993$ 21,914,453$ 23 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, 2006 Amounts reported for the governmental activities in the statement of activities (page 16) are different because: Net change in fund balances - total governmental funds (page 22)$4,626,785 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.2,317,464 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and disposals) is to decrease net assets. (57,645) 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 622,930 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.1,059,497 Special assessment revenue and mortgage receivable collections reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year. (173,285) 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. (378,413) Change in net assets of governmental activities (page 18)$8,017,333 The accompanying Notes to Financial Statements are an integral part of these statements. 24 CITY OF WINTER SPRINGS, FLORIDA GENERAL FUN D STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance With Final Budget Budgeted AmountsctualPositive A OriginalFinalmounts(Negative) A Revenues: Taxes: Property taxes7,357,746$ 7,357,746$ 7,383,612$ 25,866$ Franchise taxes38,000 38,000 48,787 10,787 7,395,7467,395,746 7,432,399 36,653 Licenses and permits: Permits500 500 16,366 15,866 Occupational licenses156,000 156,000 160,833 4,833 156,500156,500 177,199 20,699 Intergovernmental revenues: Sales tax2,558,000 2,558,000 2,701,256 143,256 State revenue sharing1,120,000 1,120,000 1,122,522 2,522 Other state shared revenue295,200 324,914 343,772 18,858 Other county shared revenue57,248 59,248 59,248 - Federal grants71,130 71,130 54,599 (16,531) 4,133,2924,101,578 4,281,397 148,105 Charges for services: Concession stand receipts92,000 92,000 85,200 (6,800) Program activity fees199,200 231,419 251,440 20,021 Rental and other177,200 177,200 190,496 13,296 500,619468,400 527,136 26,517 Fines and forfeitures: Fines and forfeitures210,000 210,000 242,152 32,152 Investment income101,500 101,500 450,603 349,103 Miscellaneous22,500 77,925 89,964 12,039 Total revenues12,456,224 12,575,582 13,200,850 625,268 The accompanying Notes to Financial Statements are an integral part of these statements. 25 Variance With Final Budget ctualPositive Budgeted Amounts A Original Finalmounts(Negative) A Expenditures: Current: General government: Executive674,715$ 728,817$ 655,339$ 73,478$ General government453,250 584,111 524,553 59,558 Finance1,068,475 1,068,475 920,846 147,629 General services836,928 892,869 713,552 179,317 Information systems1,381,421 1,629,371 1,142,072 487,299 Community development1,358,955 1,456,293 1,363,129 93,164 6,359,9365,773,744 5,319,491 1,040,445 Public safety: Police5,920,283 6,127,019 5,964,677 162,342 Fire3,783,887 3,806,835 3,342,491 464,344 9,933,8549,704,170 9,307,168 626,686 Physical environment: Public works1,139,053 1,139,053 1,007,240 131,813 Culture and recreation: Parks and recreation2,132,516 2,171,983 2,019,811 152,172 Total expenditures18,749,483 19,604,826 17,653,710 1,951,116 Excess (Deficiency) of Revenues Over Expenditures (7,029,244)(6,293,259) (4,452,860) 2,576,384 Other Financing Sources (Uses) Transfers in6,343,391 7,267,579 6,877,744 (389,835) Transfers out(39,413) (264,889) (119,787) 145,102 Capital Leases- 100,468 100,468 - Net other financing sources (uses)6,303,978 7,103,158 6,858,425 (244,733) Net Change in Fund Balance 73,91410,719 2,405,565 2,331,651 Fund Balances - Beginning 5,851,3485,851,348 5,851,348 - Fund Balances - Ending 5,925,2625,862,067 8,256,913 2,331,651 $$$$ 26 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, 2006 Variance With Final Budget Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments3,530,000$ 3,805,493$ 3,831,569$ 26,076$ Investment income- 2,785 - (2,785) Total revenues3,530,000 3,808,278 3,831,569 23,291 Expenditures: Current: General government- - 3,107 (3,107) Total expenditures- - 3,107 (3,107) Excess (Deficiency) of Revenues Over Expenditures 3,808,2783,530,000 3,828,462 20,184 Other Financing Sources (Uses) Transfers in- - - - Transfers out(3,530,000) (3,808,278) (3,802,365) 5,913 Net other financing sources (uses)(3,530,000) (3,808,278) (3,802,365) 5,913 Net Change in Fund Balance -- 26,097 26,097 Fund Balances - Beginning -- - - Fund Balances - Ending $ --$ 26,097$ 26,097$ The accompanying Notes to Financial Statements are an integral part of these statements. 27 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA ELECTRIC FRANCHISE FEE SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance With Final Budget Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments1,440,000$ 1,775,460$ 1,775,460$ -$ Investment income- 5,120 5,098 (22) Total revenues1,440,000 1,780,580 1,780,558 (22) Expenditures: Current: General government- - - - Total expenditures- - - - Excess (Deficiency) of Revenues Over Expenditures 1,780,5801,440,000 1,780,558 (22) Other Financing Sources (Uses) Transfers in- - - - Transfers out(1,440,000) (1,780,580) (1,780,558) 22 Net other financing sources (uses)(1,440,000) (1,780,580) (1,780,558) 22 Net Change in Fund Balance -- - - Fund Balances - Beginning -- - - Fund Balances - Ending $ --$ -$ -$ The accompanying Notes to Financial Statements are an integral part of these statements. 28 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE/RECYCLING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance With Final Budget Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments-$ 86,191$ 94,532$ 8,341$ Intergovernmental revenues- 59,017 53,509 (5,508) Charges for services1,787,000 1,952,536 2,152,327 199,791 Investment income5,000 13,783 21,131 7,348 Miscellaneous- 2,128 3,176 1,048 Total revenues1,792,000 2,113,655 2,324,675 211,020 Expenditures: Current: Physical environment1,612,000 1,879,980 1,879,292 688 Total expenditures1,612,000 1,879,980 1,879,292 688 Excess (Deficiency) of Revenues Over Expenditures 233,675180,000 445,383 211,708 Other Financing Sources (Uses) Transfers in- - - - Transfers out(135,991) (213,278) (209,912) 3,366 Net other financing sources (uses)(135,991) (213,278) (209,912) 3,366 Net Change in Fund Balance 20,39744,009 235,471 215,074 Fund Balances - Beginning 282,758282,758 282,758 - Fund Balances - Ending $ 303,155326,767$ 518,229$ 215,074$ 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, 2006 Business-type Activities - Enterprise Funds Water andDevelopmentStormwater Sewer UtilityServicesUtility FundFundFundTotal Assets Current assets: Cash and cash equivalents $ 1,891,9415,401,114$ 786,349$ 8,079,404$ Investments698,250 - - 698,250 Receivables, net -1,278,095 - 1,278,095 Inventories -15,295 - 15,295 Prepaid costs14,675 2,600 1,200 18,475 Restricted cash and cash equivalents -1,486,485 - 1,486,485 Total current assets 1,894,5418,893,914 787,549 11,576,004 Noncurrent assets: Restricted investments -1,970,546 - 1,970,546 Bond issuance costs -359,581 - 359,581 Capital assets: Land, buildings and equipment 150,10649,202,884 6,410,966 55,763,956 Construction in progress -707,256 - 707,256 Less accumulated depreciation (98,680)(19,156,871) (2,625,649) (21,881,200) Total capital assets (net of accumulated depreciation)30,753,269 51,426 3,785,317 34,590,012 Total noncurrent assets33,083,396 51,426 3,785,317 36,920,139 Total assets 1,945,96741,977,310 4,572,866 48,496,143 The accompanying Notes to Financial Statements are an integral part of these statements. 30 Business-type Activities - Enterprise Funds Water andDevelopment Stormwater Sewer UtilityServicesUtility FundFundFundTotal Liabilities Current liabilities: Accounts payable213,917$ 6,921$ 22,024$ 242,862$ Accrued liabilities 10,946101,819 9,614 122,379 Retainage payable11,261 - - 11,261 Compensated absences 16,488116,439 18,037 150,964 Customer deposits payable -736,517 - 736,517 Revenue bonds payable - current -895,000 - 895,000 Accrued interest payable -474,968 - 474,968 Total current liabilities 34,3552,549,921 49,675 2,633,951 Noncurrent liabilities: Revenue bonds payable -21,932,126 - 21,932,126 Total noncurrent liabilities -21,932,126 - 21,932,126 Total liabilities 34,35524,482,047 49,675 24,566,077 Net Assets Invested in capital assets, net of related debt7,926,143 51,426 3,785,317 11,762,886 Restricted -2,612,164 - 2,612,164 Unrestricted 1,860,1866,956,956 737,874 9,555,016 Total net assets$ 1,911,61217,495,263$ 4,523,191$ 23,930,066$ 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, 2006 Business-type Activities - Enterprise Funds Water and DevelopmenStormwater t Sewer UtilityServicesUtility FundFundFundTotal Operating Revenues: User charges7,822,624$ 2,482,097$ 1,048,055$ 11,352,776$ Other revenue13,672 - 101,196 114,868 Total operating revenues7,836,296 2,482,097 1,149,251 11,467,644 Operating Expenses: Salaries and benefits1,834,134 420,866 388,840 2,643,840 Materials and supplies772,255 10,240 169,782 952,277 Depreciation and amortization1,560,442 19,012 231,387 1,810,841 Other operating expenses1,036,801 228,750 40,255 1,305,806 Total operating expenses5,203,632 678,868 830,264 6,712,764 Operating income (loss)2,632,664 1,803,229 318,987 4,754,880 Nonoperating Revenue (Expenses): Investment income420,922 56,896 21,493 499,311 Interest expense(1,035,996) - - (1,035,996) Operating Grant- - 69,054 69,054 Gain (loss) on disposal of capital assets578 (29) (609) (60) Total nonoperating revenue (expense)(614,496) 56,867 89,938 (467,691) Income (loss) before contributions and transfers2,018,168 1,860,096 408,925 4,287,189 Capital contributions: Connection fees1,048,962 - - 1,048,962 Developers280,186 - - 280,186 Transfers in5,700 22,160 54,189 82,049 Transfers out(2,528,000) (752,482) (153,450) (3,433,932) Change in net assets825,016 1,129,774 309,664 2,264,454 Total Net Assets - Beginning 781,83816,670,247 4,213,527 21,665,612 Total Net Assets - End $ 1,911,61217,495,263$ 4,523,191$ 23,930,066$ 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, 2006 Business-type Activities - Enterprise Funds Water and Development Stormwater Sewer UtilityServicesUtility FundFundFundTotal Cash Flows from Operating Activities: Receipts from customers7,562,969$ 2,482,097$ 1,149,251$ 11,194,317$ Payments to suppliers(1,735,794) (238,520) (221,664) (2,195,978) Payments to employees(1,796,612) (423,098) (375,563) (2,595,273) Net cash provided by operating activities4,030,563 1,820,479 552,024 6,403,066 Cash Flows from Non-Capital Financing Activities: Operating Grants- - 191,054 191,054 Transfers in5,700 22,160 54,189 82,049 Transfers out(2,528,000) (752,482) (153,450) (3,433,932) Net cash provided (used) by non-capital financing activities(2,522,300) (730,322) 91,793 (3,160,829) Cash Flows from Capital and Related Financing Activities: Proceeds from sale of capital assets2,748 127 - 2,875 Acquisition of capital assets(749,828) (18,890) (175,750) (944,468) Principal paid on revenue bonds & leases(870,000) - - (870,000) Interest paid on revenue bonds(992,302) - - (992,302) Developers Agreement- - - - Connection fees1,048,962 - - 1,048,962 Net cash provided (used) by capital and related financing activities(1,560,420) (18,763) (175,750) (1,754,933) Cash Flows from Investing Activities: Sale of investments432,388 - - 432,388 Investment income423,949 56,896 21,493 502,338 Net cash provided by investing activities856,337 56,896 21,493 934,726 Net Increase (Decrease) in Cash and Cash Equivalents 1,128,290804,180 489,560 2,422,030 Cash and Cash Equivalents - Beginning 763,6516,083,419 296,789 7,143,859 Cash and Cash Equivalents - End $ 1,891,9416,887,599$ 786,349$ 9,565,889$ Classified As: Cash and cash equivalents5,401,114$ 1,891,941$ 786,349$ 8,079,404$ Restricted cash1,486,485 - - 1,486,485 Total6,887,599$ 1,891,941$ 786,349$ 9,565,889$ The accompanying Notes to Financial Statements are an integral part of these statements. 33 Business-type Activities - Enterprise Funds Water andDevelopmentStormwater Sewer UtilityServicesUtility FundFundFundTotal Reconciliation of Operating Incom e (Loss) to Net Cash Provided B y Operating Activities Operating income (loss)2,632,664$ 1,803,229$ 318,987$ 4,754,880$ Adjustments Not Affecting Cash : Depreciation1,539,913 19,012 231,387 1,790,312 Amortization20,529 - - 20,529 Change in Assets and Liabilities: Increase (decrease) in accounts receivable(319,026) - - (319,026) Increase in inventories(3,450) - - (3,450) Increase in prepaid costs(14,675) (2,600) (1,200) (18,475) Increase in accounts payable104,112 3,070 1,190 108,372 Increase in accrued liabilities39,022 690 3,307 43,019 Decrease in retainage payable(12,725) - (11,617) (24,342) Increase in customer deposits45,699 - - 45,699 Increase (decrease) in accrued compensated absences(1,500) (2,922) 9,970 5,548 Total adjustments1,397,899 17,250 233,037 1,648,186 Net Cash Provided by Operating Activities $ 1,820,4794,030,563$ 552,024$ 6,403,066$ Noncash Investing, Capital and Financing Activities: Contributed capital assets280,186$ -$ -$ 280,186$ Decrease in fair value of investments3,027 - - 3,027 34 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS September 30, 2006 Defined Benefit Pension Trust Fund Assets: Cash and cash equivalents$ 34,319 Receivables: Plan members contributions 51,209 Investments, at fair value: Common funds - equity 9,307,113 Common funds - bonds 4,185,790 Total investments13,492,903 Total assets 13,578,431 Liabilities - Net Assets: Held in trust for pension benefits$13,578,431 The accompanying Notes to Financial Statements are an integral part of these statements. 35 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2006 Defined Benefit Pension Trust Fund Additions: Contributions: Employer$ 1,198,922 Plan members 322,504 Total contributions1,521,426 Investment income: Net appreciation in fair value of investments1,006,827 Interest 20,136 Net investment income1,026,963 Total additions2,548,389 Deductions: Benefits 171,697 Administrative expenses84,341 Total deductions256,038 Change in Net Assets 2,292,351 Net Assets - Beginning 11,286,080 Net Assets - End $ 13,578,431 The accompanying Notes to Financial Statements are an integral part of these statements. 36 This page intentionally left blank. NOTES TO FINANCIAL STATEMENTS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2006 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 a five-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. 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 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 - Continued September 30, 2006 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 availablewhen 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. ThePublic 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. TheElectric Franchise Fee Special Revenue Fund accounts for collections of electric franchise fees. Proceeds are used to pay debt service and any excess monies not used to pay debt service are transferred to the general fund. TheSolid Waste/Recycling Special Revenue Fund is used to account for proceeds from billed solid waste and recycling services performed by contract vendors. Proceeds are used to pay monthly vendor charges for providing solid waste and recycling services. 39 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Major Governmental Funds (Continued): TheTLBD 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. ThePublic Facilities Capital Project Fund was established to account for construction of public facilities. 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 TheWater 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. TheDevelopment 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. TheStormwater Utility Fund accounts for the operation and maintenance of the City’s stormwater system. 40 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. 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 operatingrevenues and expenses from nonoperatingitems. 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 new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 41 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 1 - Summary of Significant Accounting Policies (Continued): 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. The City implemented Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosure, for fiscal year 2006. The effect of this statement is the inclusion of new disclosures for deposit and investment risk. 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. 42 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 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. 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, in accordance with Chapter 274.02, Florida Statutes, 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. 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 5. Capital Assets (Continued): 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 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, 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. 44 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 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. Note 2 - 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 $21,619,477 difference are as follows: Bonds payable $(19,733,970) Less: Issuance discount (to be amortized as interest expense) 19,271 Add: Issuance premium (to be amortized as interest expense) (83,565) Less: Deferred charge on refunding (to be amortized as interest expense) 131,409 Notes payable (815,229) Capital lease payable (100,468) Accrued interest payable (287,676) Compensated absences (749,249) Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $(21,619,477) 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 2 - 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 The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds andchanges 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 $2,317,464 difference are as follows: Capital outlay $ 4,580,707 Depreciation expense (2,263,243) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 2,317,464 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 $622,930 difference are as follows: Debt issued or incurred: Capital leases and loan $ (530,468) Principal repayment 1,153,398 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of $ 622,930 governmental activities 46 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 2 - 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 $378,413 difference are as follows: Compensated absences $(371,366) Amortization of issuance costs (14,976) Amortization of bond discounts (4,748) Accrued interest payable 12,677 Net adjustment to decrease net changes in fund balances – total governmental funds to arrive at changes in net assets of $(378,413) governmental activities Note 3 - Stewardship, Compliance, and Accountability: A. Budgetary Information 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. st 1. On or before July 1 of each year, the City Manager submits a Proposed Budget to st the City Commission for the fiscal year beginning the following October 1. 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. th 3. On or before September 30 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 - Continued September 30, 2006 Note 3 - 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. Note 4 - Deposits and Investments: Deposits At year-end, the carrying amount of the City’s deposits was $3,526,845 and the bank balance was $2,433,971. Petty cash funds of $2,110 are not on deposit with a financial institution, and fiduciary fund cash of $34,319 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 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. U.S. Government securities 2. U.S. Government Agency securities 3. Federal Instrumentalities (U.S. Government sponsored agencies) 4. Interest bearing time deposit or savings accounts 5. Repurchase agreements 6. Commercial paper 7. Bankers’ acceptances 8. State and/or local government taxable and/or tax-exempt debt 9. Registered investment companies (money market mutual funds) 10. Intergovernmental investment pool The State Board of Administration Local Government Investment Pool (SBA) is an investment pool administered by the State of Florida. Investments held in the SBA consist of U.S. Treasury obligations, short-term federal agency obligations, repurchase agreements and commercial paper. These short-term investments are included as cash equivalents and are stated at cost, which approximates fair value. 48 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 4 - Deposits and Investments (Continued): Investments (Continued) Investments made by the City at September 30, 2006 are summarized below. Defined benefit pension plan investments, other than $9,307,113 in mutual funds investing in equity securities, are included below: Weighted Average Maturity Fair ValueCredit Rating(Years) State Board of Administration $29,415,586 Unrated < 90 days US Government Agency Securities 698,250 Aaa/AAA 0.63 US Treasury 1,225,960 aa/AAAm < 90 days Pension Plan Investments: High Grade Bond Fund 4,185,790 TSY 8.2 $35,525,586 Credit Risk 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 & Poors (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, 2006, all of the city’s bank deposits were in qualified public depositories. 49 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 4 - Deposits and Investments (Continued): Custodial Credit Risk (Continued) 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, 2006, 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. 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. Note 5 - 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 AccountsUncollectibleNet ReceivableAccountsReceivable General Fund $ 176,431 $ - $ 176,431 Public & Communications Service Tax Fund 130,087 - 130,087 TLBD Debt Service Fund 1,451 - 1,451 Water & Sewer Utility Fund 1,453,786 (175,691) 1,278,095 Nonmajor Governmental Funds 1,455,041 (294,697) 1,160,344 Solid Waste/Recycling Fund 8,334 - 8,334 $3,225,130 $(470,388) $2,754,742 There is an amount of $999,495 included in accounts receivable above in a nonmajor governmental fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,590,180 and judgment receivable of $60,000 that are not available to liquidate liabilities of the current period. These receivables totaling $3,649,675 are reported as deferred revenue in the governmental funds balance sheet. 50 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 6 - Capital Assets: Capital asset activity for the year ended September 30, 2006 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental activities: Capital assets, not being depreciated: Land $ 9,760,401 $ 88,315 $ - $ 9,848,716 Construction in progress 1,444,032 3,407,117 (1,450,104) 3,401,045 Total capital assets, not being depreciated 11,204,433 3,495,432 (1,450,104) 13,249,761 Capital assets, being depreciated: Buildings 5,477,010 50,900 - 5,527,910 Improvements 9,947,650 1,179,763 - 11,127,413 Machinery and equipment 7,347,645 1,021,169 (296,512)8,072,302 Infrastructure 43,084,545 283,549 - 43,368,094 Total capital assets, being depreciated 65,856,850 2,535,381 (296,512) 68,095,719 Less accumulated depreciation for: Buildings (2,234,752)(181,466)- (2,416,218) Improvements (1,882,952)(355,665)- (2,238,617) Machinery and equipment (4,914,913)(863,557)238,867 (5,539,603) Infrastructure (20,305,122) (862,555) - (21,167,677) Total accumulated depreciation (29,337,739) (2,263,243) 238,867 (31,362,115) Total capital assets, being depreciated, net 36,519,111 272,138 (57,645) 36,733,604 Governmental activities capital assets, net $ 47,723,544 $ 3,767,570 $(1,507,749)$49,983,365 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 6 - Capital Assets (Continued): BeginningEnding BalanceIncreasesDecreasesBalance Business-type activities: Capital assets, not being depreciated: Land $ 5,344,916 $ - $ - $ 5,344,916 Construction in progress 459,222 664,796 (416,762) 707,256 Total capital assets, not being depreciated 5,804,138 664,796 (416,762) 6,052,172 Capital assets, being depreciated: Buildings 755,778 - - 755,778 Improvements 45,530,297 765,206 (2,500) 46,293,003 Machinery and equipment 3,217,733 221,133 (68,607) 3,370,259 Total capital assets, being depreciated 49,503,808 986,339 (71,107) 50,419,040 Less accumulated depreciation for: Buildings (368,932)(25,143)- (394,075) Improvements (17,500,090)(1,506,021)1,330 (19,004,781) Machinery and equipment (2,280,319) (259,148) 57,123 (2,482,344) Total accumulated depreciation (20,149,341) (1,790,312) 58,453 (21,881,200) Total capital assets, being depreciated, net 29,354,467 (803,973) (12,654) 28,537,840 Business-type activities capital assets, net $ 35,158,605 $ (139,177)$(429,416) $34,590,012 Depreciation expense was charged to functions/programs as follows: Governmental activities: General government $ 206,270 Public safety 595,319 Physical environment 1,084,190 Culture and recreation 377,464 Total depreciation expense - governmental activities $2,263,243 Business-type activities: Water and sewer $1,539,913 Development services 19,012 Stormwater 231,387 Total depreciation expense - business-type activities $1,790,312 52 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 7 - 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 $17,604 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 Activities Assets - Machinery & equipment $118,072 Less: accumulated depreciation (11,043) Total $107,029 The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2006 were as follows: Governmental Activities Year Ending September 30, 2007 $ 28,093 2008 28,093 2009 28,093 2010 28,093 Total minimum lease payments 112,372 Less: Amount representing interest (11,904) Net present value $100,468 53 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 8 - 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: Interest Rates Balance andOriginalSeptember Dates MaturityAmount30, 2006 Governmental Activities 10/1/99 Improvement Refunding3.25 - 5.25% to Revenue Bonds - Series 1999 (4/1 & 10/1) 10/1/29 $ 7,998,970 $ 5,928,970 10/1/02 Special Assessment 3.4 - 5.25% to Revenue Bonds - Series 2001 (4/1 & 10/1) 10/1/29 $ 2,265,000 2,090,000 10/1/04 Improvement Refunding 2.0 - 3.7% to Revenue Bonds - Series 2003 (4/1 & 10/1) 10/1/18 $ 8,870,000 8,575,000 Total $16,593,970 Business-Type Activities 10/1/02 Water and Sewer Refunding4.5 - 5.5% to Revenue Bonds - Series 2000 (4/1 & 10/1) 10/1/30 $ 6,969,191 $ 6,824,191 10/1/02 Water and Sewer Refunding4.0 - 5.0% to Revenue Bonds - Series 2001 (4/1 & 10/1) 10/1/21 $ 6,065,000 5,225,000 10/1/03 Water and Sewer Refunding3.0 - 5.25% to Revenue Bonds - Series 2002 (4/1 & 10/1) 10/1/20 $13,980,000 11,675,000 Total $23,724,191 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 8 - Long-Term Debt (Continued): Revenue Bonds (Continued) Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Governmental Activities Business-Type Activities September 30, Principal Interest Principal Interest 2007 $ 670,000 $ 474,232 $ 895,000 $ 960,222 2008 700,000 450,087 945,000 927,198 2009 735,000 429,652 980,000 890,597 2010 775,000 405,867 1,015,000 851,523 2011 810,000 378,965 1,060,000 810,215 2012-2016 4,735,000 1,400,577 6,085,000 3,311,697 2017-2021 4,406,677 3,121,386 6,620,000 1,675,532 2022-2026 2,196,657 4,999,857 2,759,653 7,073,721 2027-2031 1,565,636 3,150,753 3,364,538 6,526,087 $16,593,970 $14,811,376 $23,724,191 $23,026,792 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: InterestBalance Rates and OriginalSeptember Dates MaturityAmount30, 2006 Governmental Activities Limited General 2.0 - 5.375% 7/1/03 - Obligation Bonds - Series 2002 (1/1 & 7/1) 7/1/31 $3,400,000 $3,140,000 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 8 - 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 2007 $ 70,000 $ 153,472 2008 70,000 151,023 2009 75,000 148,433 2010 75,000 145,508 2011 80,000 142,508 2012-2016 455,000 653,270 2017-2021 595,000 522,250 2022-2026 755,000 358,250 2027-2031 965,000 149,000 $3,140,000 $2,423,714 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, therefore the City still has $1,900,000 available to borrow. There were no advances during fiscal year 2005 or 2006. Advances received during 2004 have been repaid. 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. 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 $93,400 of this with prepaid assessments during the year ended September 30, 2006. 56 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 8 - Long-Term Debt (Continued): Notes Payable (Continued) Notes payable outstanding at year end are as follows: Special Assessment Revenue Note, Series 2006. Principal is payable annually beginning July 1, 2007 and interest is payable semi-annually on January 1 and July 1. Maturity is July 1, 2021 and interest is 4.10%. $336,600 Capital Improvement Revenue Note, Series 2004A - payable interest only until July 1, 2010 when entire balance is due. Interest is 4.22%. 478,629 $815,229 Annual debt service requirements to maturity for notes payable are as follows: Year Ending Governmental Activities September 30, Principal Interest 2007 $ 14,630 $ 36,194 2008 17,449 33,374 2009 18,164 32,659 2010 497,538 26,865 2011 19,684 10,941 2012-2016 111,209 41,916 2017-2021 136,555 17,170 $815,229 $199,119 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 8 - Long-Term Debt (Continued): Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2006 was as follows: BeginningEndingDue Within BalanceAdditionsReductionsBalanceOne Year Governmental activities: Bonds payable - Revenue bonds $15,093,970 $ - $ (590,000) $14,503,970 $620,000 Special assessment debt with government commitment 2,135,000 - (45,000) 2,090,000 50,000 Limited general obligation bonds 3,205,000 - (65,000) 3,140,000 70,000 Less deferred amounts: - - Issuance discounts (20,032) - 761 (19,271) - Issuance premiums 90,529 - (6,964) 83,565 - On refunding (142,360) - 10,951 (131,409) - Total bonds payable 20,362,107 - (695,252) 19,666,855 740,000 Notes payable - Capital improvement notes 734,184 430,000 (348,955) 815,229 14,630 Capital lease 104,443 100,468 (104,443) 100,468 28,093 Compensated absences 377,883 404,061 (32,695) 749,249 150,000 Governmental activity long-term liabilities $21,578,617 $934,529 $1,181,345 $21,331,801 $927,877 Business-type activities: Bonds payable - Revenue bonds $24,594,191 $ - $ (870,000) $23,724,191 $895,000 Less deferred amounts: For issuance discount (28,563) - 1,064 (27,499) - On refunding (927,902) - 58,336 (869,566) - Total bonds payable 23,637,726 - (810,600) 22,827,126 895,000 Compensated absences 145,416 150,964 (145,416) 150,964 30,000 Business-type activity long-term liabilities $23.783,142 $150,964 $ (956,016) $22,978,090 $925,000 58 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 9 - Interfund Receivables, Payables and Transfers: The composition of interfund balances as of September 30, 2006 is as follows: Receivable Fund Payable Fund Amount General Public and Communications Service Tax $101,904 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, 2006 consisted of the following: Recipient Fund Amount Purpose Transfer from Electric Franchise Fee Special Revenue Fund to pay Debt Service expenses on the Improvement Refunding Revenue 1999 Debt Service Fund $ 296,000 Bonds, Series 1999. Transfer from Public & Communications Service Tax Special Revenue Fund to pay Debt Service expenses on the Improvement 1999 Debt Service Fund 296,000 Refunding Revenue Bonds, Series 1999. Transfer from Electric Franchise Fee Special Revenue Fund to pay Debt Service expenses on the Improvement Refunding Revenue 2003 Debt Service Fund 211,500 Bonds, Series 2003. Transfer from Public & Communications Service Tax Special Revenue Fund to pay Debt Service expenses on the Improvement 2003 Debt Service Fund 211,500 Refunding Revenue Bonds, Series 2003. Transfer from Parks Impact Fee and Police Impact Fee Special Revenue Funds to pay 2004 Capital Projects Debt debt service expenses on the Capital Service Fund 210,819 Improvement Note, Series 2004. Transfer from General Fund for share of Development Service personnel cost associated with Community Development Development Services Fund 22,160 functions. 59 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 9 - Interfund Receivables, Payables and Transfers (Continued): Recipient Fund Amount Purpose 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, records management project and General Fund $ 1,178,077 operator expenses. Transfer from Development Services Fund for indirect costs, administration, fire prevention, Community Development, Information Services special projects and records management General Fund 752,482 project expenses (crossover costs). Transfer from Solid Waste/Recycling Special Revenue Fund for administration, franchise fees and Information Services records General Fund 132,834 management project. Transfer from TLBD Maintenance Special Revenue Fund for City Clerk, Beautification General Fund 48,473 Coordinator and insurance expenses. Transfer from Oak Forest Maintenance Special Revenue Fund for City Clerk, Beautification General Fund 9,408 Coordinator and insurance expenses. Transfer from Public & Communications Service Tax Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue General Fund 3,294,865 Bonds, Series 1999 and Series 2003. Transfer from Electric Franchise Fee Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, Series 1999 and General Fund 1,273,058 Series 2003. Transfer from Road Improvements Special General Fund 45,200 Revenue Fund for project coordinator services. 60 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 9 - Interfund Receivables, Payables and Transfers (Continued): Recipient Fund Amount Purpose Transfer from Stormwater Utility Fund for administration and records management General Fund $ 87,418 project expenses. Transfer from Special Law Enforcement - Federal - Special Revenue Fund for purchase General Fund 14,600 of four motorcycles. Transfer from Water and Sewer Utility Fund for General Fund 30,997 share of Kiva project. Transfer from Stormwater Utility Fund for share General Fund 10,332 of Kiva project. Homeland Mitigation Grant Transfer from Parks Impact Fee, Police Impact Program Capital Project Fee, Fire Impact Fee Special Revenue Funds Fund 48,638 for City required grant funds match. Parks Impact Fee Special Transfer from Parks Donation Special Revenue Revenue Fund 216 Fund to close out fund. Parks Impact Fee Special Transfer from General Fund for purchase of Revenue Fund 70,723 playground equipment. Public Facilities CapitalTransfer from Stormwater Utility Fund for share Projects Fund 50,000 of the new Utility/Public Works facility. Transfer from Transportation Improvement Public Facilities CapitalSpecial Revenue Fund for share of the new Projects Fund 150,000 Utility/Public Works facility. Transfer from Water and Sewer Operating Public Facilities CapitalUtility Fund (operating) for share of the new Projects Fund 1,282,800 Utility/Public Works facility. Road Improvements Special Transfer from General Fund for fifty percent of Revenue Fund 8,840 power line removal costs. Transfer from Parks Impact Fee Special Senior Center Expansion Revenue Fund for Senior Center Expansion Capital Projects Fund 100,000 and Therapy Pool. 61 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 9 - Interfund Receivables, Payables and Transfers (Continued): Recipient Fund Amount Purpose Transfer From Special Law Enforcement - Special Law Enforcement - Local - Special Revenue Fund to reclass Federal - Special RevenueConfiscated Property from Local to Federal Fund $ 9,813 funds. Transfer from Solid Waste/Recycling Special Storm Reserve SpecialRevenue Fund for future emergency storm Revenue Fund 77,078 cleanup expenses. Transfer from General Fund ten percent of Stormwater Utility Fund 18,063 engineer expense. Transfer from Water and Sewer Utility Fund Stormwater Utility Fund 36,126 twenty percent of engineer expense. Transfer from TLBD Improvement Capital Project Fund residual equity to apply to TLBD Debt Service Fund 52,502 principal payments. TLBD (Tuskawilla Lighting and Beautification District)Transfer from TLBD Phase II Improvements Improvement Capital Capital Projects Fund to reimburse for TLBD Projects Fund 44,675 Phase II start up costs. Transfer from Stormwater Utility Fund for Water and Sewer Utility Fund 5,700administration fees. $10,080,897 Note 10 - Defined Benefit Pension Plan: Plan Description The City maintains a single-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. Those recommendations would then be taken back to the Commission for final approval. 62 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 10 - Defined Benefit Pension Plan (Continued): 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 $322,504 for the year ended September 30, 2006. The City is required to contribute at an actuarially determined rate; the current rate is 13.2% of covered payroll. The City’s contribution for the year ended September 30, 2006 was $1,198,922. Administration costs of the plan are paid out of the plan and amounted to $84,341 in 2006. Membership in the Defined Benefit Plan consisted of the following at October 1, 2005: Retirees and beneficiaries receiving benefits 14 Terminated plan members entitled to but not receiving benefits 84 Active plan members: Vested 191 Non-vested 60 349 Annual Pension Cost and Net Pension Obligation - The City has contributed the Annual Required Contribution (ARC) since inception of the plan on October 1, 1997, and thus has not had or needed to report, a Net Pension Obligation (NPO). Three Year Trend Information - Fiscal year Annual Pension Percentage of endedCost (APC)APC Contributed 9/30/04 $ 749,863 100% 9/30/05 951,133 100% 9/30/06 1,198,922 100% 63 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 10 - Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation (Continued) 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, 2005. The plan was amended October 1, 2004 to increase the benefit formula percentage for service prior to October 1, 2000 by .25% increments each year beginning October 1, 2005 through the plan year beginning October 1, 2008. Assumptions: Investment Earnings 8% Salary Increases - Inflation 3% Postretirement Benefit Increases 0% Mortality Table 1983 Group Annuity Mortality Table Actuarial Valuation: Frequency Annual Cost Method Frozen Entry Age Amortization Method Level Percentage of Projected Payroll Amortization Period 30 Years Open Asset Valuation Method Long Range Yield Method Note 11 - 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 solution 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. 64 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2006 Note 12 - 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 13 - 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 14 - Commitments: At September 30, 2006, the City had entered into construction contracts in the amount of $2,497,855. 65 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION Defined Benefit Pension Trust Fund Schedule of Funding Progress ActuarialUAAL as ActuarialAccruedUnfundeda % of ActuarialValue of (AAL)AALFundedCoveredCovered ValuationAssetsEntry Age (UAAL)RatioPayroll Payroll Date (a). (b). (b-a).(a/b) (c).(b-a) /c 10/1/00 $4,933,945 $7,701,059$2,767,11464.1% $5,324,680 52.0% 10/1/01 5,829,453 8,402,8212,573,36869.9 6,569,263 39.2 10/1/02 6,620,248 9,128,5222,508,27472.5 6,586,077 38.1 10/1/03 7,279,048 9,771,5942,492,54674.5 8,094,829 30.8 10/1/04 8,134,588 10,931,7742,797,18674.4 8,982,189 31.1 10/1/05 9,716,089 13,178,4853,462,39673.7 9,659,446 35.8 Schedule of Contributions from the Employer Annual Required Percentage of Fiscal Year Contribution ARC Ended(ARC)Contribution 9/30/01 $556,318 100% 9/30/02 605,058 100% 9/30/03 658,735 100% 9/30/04 749,863 100% 9/30/05 951,133 100% 9/30/06 1,198,922 100% 66 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This page intentionally left blank. MAJOR GOVERNMENTAL FUNDS Debt Service Fund TLBD Debt Service Fund -This fund was established to account for the accumulation of principal and interest for the 2001 special assessment bond issue. Capital Projects Fund Public Facilities Capital -This fund was established to account for construction of Projects Fund public facilities. This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA TLBD DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance With Final Budget Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments155,185$ 155,185$ 51,016$ (104,169)$ Investment income1,200 1,200 110,998 109,798 Miscellaneous- - 472 472 Total revenues156,385 156,385 162,486 6,101 Expenditures: Current: Physical environment7,200 7,750 7,500 250 Debt service: Principal retirement45,000 45,000 45,000 - Interest and fiscal charges106,715 106,715 106,696 19 Total expenditures158,915 159,465 159,196 269 Excess (Deficiency) of Revenues Over Expenditures (3,080)(2,530) 3,290 6,370 Other Financing Sources (Uses) Transfers in- 52,502 52,502 - Net other financing sources (uses)- 52,502 52,502 - Net Change in Fund Balance 49,422(2,530) 55,792 6,370 Fund Balances - Beginning 106,292106,292 106,292 - Fund Balances - Ending $ 155,714103,762$ 162,084$ 6,370$ 67 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA PUBLIC FACILITIES CAPITAL PROJECTS FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance With Final Budget Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income15,000$ 15,000$ 165,364$ 150,364$ Total revenues15,000 15,000 165,364 150,364 Expenditures: Current: Capital outlay: General government3,948,500 2,576,300 2,196,636 379,664 Total expenditures3,948,500 2,576,300 2,196,636 379,664 Excess (Deficiency) of Revenues Over Expenditures (2,561,300)(3,933,500) (2,031,272) 530,028 Other Financing Sources (Uses) Transfers in1,150,000 1,482,800 1,482,800 - Note Proceeds600,000 - - - Net other financing sources (uses)1,750,000 1,482,800 1,482,800 - Net Change in Fund Balance (1,078,500)(2,183,500) (548,472) 530,028 Fund Balances - Beginning 2,701,6092,701,609 2,701,609 - Fund Balances - Ending $ 1,623,109518,109$ 2,153,137$ 530,028$ 68 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 local Trust Fund - 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. Recreation Acquisition -This fund was established to record funds received from Fund new developers for the acquisition of land for recreational purposes in lieu of land donated by these developers for recreational purposes. Transportation Impact Fee -This fund is used to account for collected impact fees on Fund 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 Facilities Impact Fee -This fund is used to account for collected impact fees on Fund new development to defray the cost of capital investment needed to maintain public buildings due to future growth. Medical Transport Services -This fund is used to receive revenues generated from fees Fund charged for paramedic services. The proceeds from this fund are used to pay for the incremental costs related to providing these services. NONMAJOR GOVERNMENTAL FUNDS - Continued Special Revenue Funds - Continued 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. TLBD Maintenance Fund -This fund is used to account for collected special assessments for maintenance related to the Tuscawilla Lighting and Beautification District. Oak Forest Maintenance -This fund is used to account for collected special Fund assessments for maintenance related to the Oak Forest subdivision wall. Road Improvements Fund -This fund is used to account for collected one-cent sales tax revenues to be used for transportation-related improvements. 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 federal Trust Fund – 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 signage Homeowners Associations such as streetlighting and 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. Debt Service Funds 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. 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. 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 resources Service Fund and payment of principal and interest for the 2002 limited general obligation bond. NONMAJOR GOVERNMENTAL FUNDS - Continued Debt Service Funds - Continued 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 Service -This fund is used to account for the accumulation of Fund resources and payment of principal and interest for the TLBD Phase II Improvements. Capital Projects Funds 1999 Construction Capital -This fund was established for the acquisition and Projects Fund construction of City - owned Capital Improvements. TLBD Improvement Capital -This fund was established to account for construction of Projects Fund improvements to the Tuscawilla Lighting and Beautification District. Oak Forest Capital Projects -This fund was established to account for construction of Fund the Oak Forest subdivision wall. Revolving Rehab Capital -This fund was established to provide loans for Projects Fund rehabilitation projects within the City. City Hall Expansion Capital -This fund was established to account for expansion of City Projects Fund Hall. TLBD Phase II -This fund was established to account for the construction Improvements Capital of the TLBD Phase II Improvements. Projects Fund Hazard Mitigation Grant -This fund was established to account for projects paid for Program Capital Projects through the Hazard Mitigation Grant Program. Fund Senior Center Expansion -This fund was established to account for the Senior Center Capital Projects Fund Expansion and Therapy Pool project. Special Revenue Police Special Law Transportation Transportation Education Enforcement Improvement Impact Fund Trust Fund - Local Fund Fee Fund Assets: Cash and cash equivalents 50,91$ 6,039$ 374,665$ 1,556,076$ 8 Receivables 1,327 - - - Prepaid costs 3,770 - - - Special assessment receivable - - - - Judments receivable - - - - g Total Assets 56,01$ 6,03$ 374,66$ 1,556,07$ 6568 Liabilities and Fund Balances: Liabilities: Accounts payable 940$ -$ 1,354$ 71,48$3 Accrued liabilities - - - - Deferred revenue - - - - Unearned revenue - - - - Total Liabilities 940 - 1,354 71,483 Fund Balances: Reserved for Debt Service - - - - Unreserved 55,07 6,036 373,315 1,484,592 5 Total Fund Balances 55,07 6,036 373,315 1,484,592 5 Total Liabilities and Fund Balances 56,01$ 6,03$ 374,66$ 1,556,07$ 6568 Special Revenue Police Fire Parks Public Facilities Medical Impact Impact Impact Impact Transport rbor A Fee Fund Fee Fund Fee Fund Fee Fund Services Fund Fund $ 757,3985,755$ 373,513$ 234,199$ 256,635$ 257,317$3 -- - - 152,29 2,4707 -- - - - - -- - - - - -- - - - - $ 757,3985,75$ 373,51$ 234,19$ 408,93$ 259,78$ 539543 $ 835-$ -$ -$ 3,08$ -5$ -- - - 3,300 - -- - - - - -- - - - 2,470 835- - - 6,38 2,4705 -- - - - - 756,5585,755 373,518 234,199 402,545 257,3193 756,5585,755 373,518 234,199 402,545 257,3193 $ 757,3985,75$ 373,51$ 234,19$ 408,93$ 259,78$ 539543 (Continued) Special Revenue TLBD Oak Forest Road Emergency Maintenance Maintenance Improvements and Disaster Fund Fund Fund Relief Fund Assets: Cash and cash equivalents 280,66$ 24,469$ 1,082,394$ 663,462$5 Receivables 2,05 5498 999,49 -5 Prepaid costs - - - - Special assessment receivable - - - - Judments receivable - - - - g Total Assets 282,72$ 25,01$ 2,081,88$ 663,46$ 7375 Liabilities and Fund Balances: Liabilities: Accounts payable 4,67$ 1205$ -$ -$ Accrued liabilities - - - - Deferred revenue - - 999,49 -5 Unearned revenue - - - - Total Liabilities 4,67 1205 999,49 -5 Fund Balances: Reserved for Debt Service - - - - Unreserved 278,05 24,892 1,082,393 663,4625 Total Fund Balances 278,05 24,892 1,082,393 663,4625 Total Liabilities and Fund Balances 282,72$ 25,01$ 2,081,88$ 663,46$ 7375 Special RevenueDebt Service Special Law HOA Projects - Storm Enforcement Trust Streetlihtin and Reserve 2003 Debt 1999 Debt gg Fund - Federal Signage Fund Fund Total Service Fund Service Fund $ 27,87141,902$ 77,95$ 6,151,239$ 295,832$ 544,573$ 6 -- - 1,158,19 -6 - -- - 3,770 - - -- - - - - -- - - - - $ 27,87141,90$ 77,95$ 7,313,19$ 295,83$ 544,57$ 29836 $ --$ -$ 82,49$ -2$ -$ -- - 3,300 - -- - 999,49 -5 - -- - 2,470 - - -- - 1,087,75 -7 - -- - - 295,83 544,573 6 27,87141,902 77,95 6,225,4419 - - 27,87141,902 77,95 6,225,4419 295,83 544,573 6 $ 27,87141,90$ 77,95$ 7,313,19$ 295,83$ 544,57$ 29836 (Continued) Debt Service Oak Forest Central Winds 2004 Capital TLBD Phase II Debt Service GO Debt Service Proects Debt Debt j Fund Fund Service Fund Service Fund Assets: Cash and cash equivalents 5,082$ 50,33$ 420$ 1,264$ Receivables 735 1,413 - - Prepaid costs - - - - Special assessment receivable 550,18 - - - 0 Judments receivable - - - - g Total Assets 555,99$ 51,74$ 42$ 1,264$ 73 Liabilities and Fund Balances: Liabilities: Accounts payable 3,37$ -5$ -$ -$ Accrued liabilities - - - - Deferred revenue 550,18 -0 - - Unearned revenue - - - - Total Liabilities 553,55 -5 - - Fund Balances: Reserved for Debt Service 2,442 51,74 423 1,264 Unreserved - - - - Total Fund Balances 2,442 51,74 423 1,264 Total Liabilities and Fund Balances 555,99$ 51,74$ 42$ 1,264$ 73 Debt Service Capital Projects 1999Revolving City Hall TLBD Phase II Construction Oak Forest Rehab Expansion Improvements Total Fund Fund Fund Fund Fund $ 2,139,00897,127$ 38,209$ 982,216$ 15,430$ 398,699$ 4 -2,148 - - - - -- - - - - -550,18 - - - - 0 -- - 60,00 - - 0 $ 2,139,001,449,45$ 38,20$ 1,042,21$ 15,43$ 398,69$ 596094 $ 5,8923,375$ -$ 5$ 3,600$ -$ -- - - - - -550,180 - 60,00 -0 - -- - - - - 5,892553,555 - 60,00 3,6005 - -895,900 - - - - 2,133,11- 38,207 982,206 11,835 398,699 4 2,133,11895,900 38,207 982,206 11,835 398,699 4 $ 2,139,001,449,45$ 38,20$ 1,042,21$ 15,43$ 398,69$ 596094 (Continued) This page intentionally left blank. Capital ProjectsTotal Hazard Senior Center Nonmajor Mitiation Grant Expansion Governmental g Program Fund Fund Total Funds Assets: Cash and cash equivalents 49,60$ 95,946$ 3,719,119$ 10,767,473$ 2 Receivables - - - 1,160,34 4 Prepaid costs - - - 3,770 Special assessment receivable - - - 550,18 0 Judments receivable - - 60,00 60,00 g00 Total Assets 49,60$ 95,94$ 3,779,11$ 12,541,76$ 6936 Liabilities and Fund Balances: Liabilities: Accounts payable -$ 32,96$ 42,4614$ 128,32$8 Accrued liabilities - - - 3,300 Deferred revenue - - 60,00 1,609,670 5 Unearned revenue - - - 2,470 Total Liabilities - 32,96 102,4614 1,743,77 3 Fund Balances: Reserved for Debt Service - - - 895,900 Unreserved 49,60 62,986 3,676,655 9,902,092 3 Total Fund Balances 49,60 62,986 3,676,655 10,797,992 3 Total Liabilities and Fund Balances 49,60$ 95,94$ 3,779,11$ 12,541,76$ 6936 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2006 Special Revenue Police Secial Law Transortation Recreation pp Education Enforcement Imrovement Acuisition pq Fund Trust Fund - Local Fund Fund Revenues: Taxes and special assessments -$ -$ -$ -$ Licenses and ermits - - - - p Intergovernmental revenues - - 576,421 - Chares for services - - - - g Fines and forfeitures 28,340 8,654 - - Investment income 2,793 400 21,693 - Miscellaneous - - - - Total revenues 31,133 9,054 598,114 - Expenditures: Current: General government - - - - Public safet 40,815 1,000 - - y Physical environment - - 105,477 - Culture and recreation - - - - Debt Service: Principal retirement - - - - Interest and fiscal chares - - - - g Issuance costs - - - - Caital outla: py General government - - - - Public safety - 4,197 - - Physical environment - - 345,964 - Culture and recreation - - - 18,455 Total expenditures 40,815 5,197 451,441 18,455 Excess (Deficiency) of Revenues over Expenditures 3,857(9,682) 146,673 (18,455) Other Financing Sources (Uses): Transfers in - - - - Transfers out -9,813150,000216 ()()() Notes issued - - - - Net other financing sources (uses) -(9,813)(150,000)(216) Net Change in Fund Balances (5,956)(9,682) (3,327) (18,671) Fund Balances - Beginning 11,99164,758 376,639 18,671 Fund Balances - Ending $ 6,03555,076$ 373,312$ -$ 76 Special Revenue Transortation Police Fire Parks Public Facilities Medical p Imact Imact Imact Imact Imact Transort pppppp Fee Fund Fee Fund Fee Fund Fee Fund Fee Fund Services Fund $ --$ -$ -$ -$ -$ 149,066958,947 323,476 369,006 199,058 - -- - - - - -- - - - 413,805 -- - - - - 2,66860,148 27,804 15,758 5,231 7,983 -- - - - - 151,7341,019,095 351,280 384,764 204,289 421,788 -- - - 3,459 - 3,459- 19,087 - - 268,019 -23,361 - - - - -- - 3,460 - - -- - - - - -- - - - - -- - - - - -- - - - - -- 6,130 - - 6,828 -561,963 - - - - -- - 104,189 - - 3,459585,324 25,217 107,649 3,459 274,847 148,275433,771 326,063 277,115 200,830 146,941 -- - 70,939 - - -83,17828,401 -247,877 - ()()() -- - - - - -(83,178)(28,401) -(176,938) - 65,097433,771 297,662 100,177 200,830 146,941 20,6581,050,824 458,896 273,342 33,365 255,608 $ 85,7551,484,595$ 756,558$ 373,519$ 234,195$ 402,549$ (Continued) 77 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2006 Special Revenue TLBD Oak Forest Road rbor Maintenance Maintenance Imrovements Ap Fund Fund Fund Fund Revenues: Taxes and special assessments -$ 220,289$ 38,002$ -$ Licenses and ermits 43,952 - - - p Intergovernmental revenues 5,000 5,363 - 446,821 Chares for services - - - - g Fines and forfeitures - - - - Investment income 12,582 18,201 1,674 45,164 Miscellaneous 1,600 - - - Total revenues 63,134 243,853 39,676 491,985 Expenditures: Current: General government - - - - Public safet - - - - y Physical environment 43,584 261,544 27,028 - Culture and recreation - - - - Debt Service: Principal retirement - - - - Interest and fiscal chares - - - - g Issuance costs - - - - Caital outla: py General government - - - - Public safety - - - - Physical environment 17,060 - - 267,211 Culture and recreation - - - - Total expenditures 60,644 261,544 27,028 267,211 Excess (Deficiency) of Revenues over Expenditures (17,691)2,490 12,648 224,774 Other Financing Sources (Uses): Transfers in - - - 8,840 Transfers out -48,4739,40845,200 ()()() Notes issued - - - - Net other financing sources (uses) -(48,473)(9,408)(36,360) Net Change in Fund Balances (66,164)2,490 3,240 188,414 Fund Balances - Beginning 344,216254,823 21,653 893,978 Fund Balances - Ending $ 278,052257,313$ 24,893$ 1,082,392$ 78 Special Revenue Emerenc Secial Law HOA Proects - Storm gypj and Disaster Enforcement Trust Streetlihtin and Reserve gg Relief Fund Fund - Federal Signage Fund Fund Total $ --$ -$ -$ 258,291$ -- - - 2,043,505 -- - - 1,033,605 -- - - 413,805 41,236- - - 78,230 5,45324,546 871 881 253,850 -220,485 27,000 - 249,085 46,689245,031 27,871 881 4,330,371 -13,122 - - 16,581 -- - - 332,380 -- - - 460,994 -- - - 3,460 -- - - - -- - - - -- - - - -- - - - -- - - 17,155 -- - - 1,192,198 -- - - 122,644 -13,122 - - 2,145,412 46,689231,909 27,871 881 2,184,959 9,813- - 77,078 166,670 - -14,600 -637,166 ()() -- - - - - -(4,787) 77,078(470,496) 41,902231,909 27,871 77,959 1,714,463 -431,556 - - 4,510,978 $ 41,902663,465$ 27,871$ 77,959$ 6,225,441$ (Continued) 79 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2006 Debt Service Oak Forest Central Winds 2003 Debt 1999 Debt Debt Service GO Debt Service Service Fund Service Fund Fund Fund Revenues: Taxes and special assessments -$ -$ 13,131$ 219,736$ Licenses and ermits - - - - p Intergovernmental revenues - - - - Chares for services - - - - g Fines and forfeitures - - - - Investment income 7,027 12,514 24,414 6,023 Miscellaneous - - 21,072 - Total revenues 7,027 12,514 58,617 225,759 Expenditures: Current: General government - - - - Public safet - - - - y Physical environment - - 7,025 - Culture and recreation - - - - Debt Service: Principal retirement 150,000 440,000 30,825 65,000 Interest and fiscal chares 273,535 131,472 21,160 155,983 g Issuance costs - - - - Caital outla: py General government - - - - Public safety - - - - Physical environment - - - - Culture and recreation - - - - Total expenditures 423,535 571,472 59,010 220,983 Excess (Deficiency) of Revenues over Expenditures (558,958)(416,508) (393) 4,776 Other Financing Sources (Uses): Transfers in 423,000 592,000 - - Transfers out - - - - Notes issued - - - - Net other financing sources (uses) 423,000 592,000 - - Net Change in Fund Balances 33,0426,492 (393) 4,776 Fund Balances - Beginning 511,534289,341 2,835 46,967 Fund Balances - Ending $ 544,576295,833$ 2,442$ 51,743$ 80 Debt ServiceCapital Projects 2004 Caital TLBD Phase II 1999 TLBD p Proects Debt Debt Construction Imrovement jp Service Fund Service Fund Total Fund Fund $ 94,522-$ 327,389$ -$ -$ -- - - - -- - - - -- - - - -- - - - 142375 50,495 101,287 - -- 21,072 37,000 - 94,664375 398,956 138,287 - -- - - 11,921 -- - - - -- 7,025 - - -- - - - 93,400224,730 1,003,955 - - -8,459 590,609 - - -- - - - -- - - - -- - - - -- - 47,267 - -- - - - 93,400233,189 1,601,589 47,267 11,921 1,264(232,814) (1,202,633) 91,020 (11,921) -210,819 1,225,819 - 44,675 -- - -52,502 () -- - - - -210,819 1,225,819 -(7,827) 1,264(21,995) 23,186 91,020 (19,748) -22,037 872,714 2,042,097 19,748 $ 1,26442$ 895,900$ 2,133,117$ -$ (Continued) 81 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2006 Capital Projects Revolvin Cit Hall TLBD Phase II gy Oak Forest Rehab Exansion Imrovements pp Fund Fund Fund Fund Revenues: Taxes and special assessments -$ -$ -$ 135,000$ Licenses and ermits - - - - p Intergovernmental revenues - - - - Chares for services - - - - g Fines and forfeitures - - - - Investment income 2,121 43,000 1,320 10,094 Miscellaneous - 145,356 - - Total revenues 2,121 188,356 1,320 145,094 Expenditures: Current: General government - 21,474 - 30 Public safet - - - - y Physical environment - - - - Culture and recreation - - - - Debt Service: Principal retirement - - - - Interest and fiscal chares - - - - g Issuance costs - - - 16,933 Caital outla: py General government - - 30,477 114,762 Public safety - - - - Physical environment 7,720 - - - Culture and recreation - - - - Total expenditures 7,720 21,474 30,477 131,725 Excess (Deficiency) of Revenues over Expenditures 166,882(5,599) (29,157) 13,369 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - -44,675 () Notes issued - - - 430,000 Net other financing sources (uses) - - - 385,325 Net Change in Fund Balances 166,882(5,599) (29,157) 398,694 Fund Balances - Beginning 815,32343,805 40,996 - Fund Balances - Ending $ 982,20538,206$ 11,839$ 398,694$ 82 Capital ProjectsTotal Hazard Senior Center Nonmaor j Mitiation Grant Exansion Governmental gp Program Fund Fund Total Funds $ --$ 135,000$ 720,680$ -- - 2,043,505 -- - 1,033,605 -- - 413,805 -- - 78,230 1,949968 160,739 465,084 -- 182,356 452,513 1,949968 478,095 5,207,422 -- 33,425 50,006 -- - 332,380 -- - 468,019 -- - 3,460 -- - 1,003,955 -- - 590,609 -- 16,933 16,933 -- 145,239 145,239 -- - 17,155 -- 54,987 1,247,185 38,964- 38,964 161,608 38,964- 289,548 4,036,549 (37,015)968 188,547 1,170,873 100,00048,638 193,313 1,585,802 --97,177734,343 ()() -- 430,000 430,000 100,00048,638 526,136 1,281,459 62,98549,606 714,683 2,452,332 -- 2,961,969 8,345,661 $ 62,98549,606$ 3,676,652$ 10,797,993$ 83 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Fines and forfeitures25,000$ 25,000$ 28,340$ 3,340$ Investment income1,500 1,500 2,793 1,293 Total revenues26,500 26,500 31,133 4,633 Expenditures: Current: Public safety41,000 41,000 40,815 185 Total expenditures41,000 41,000 40,815 185 Excess (Deficiency) of Revenues Over Expenditures (14,500)(14,500) (9,682) 4,818 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance (14,500)(14,500) (9,682) 4,818 Fund Balances - Beginning 64,75864,758 64,758 - Fund Balances - Ending $ 50,25850,258$ 55,076$ 4,818$ 84 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST - LOCAL - SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Fines and forfeitures50,000$ 25,000$ 8,654$ (16,346)$ Investment income700 350 400 50 Total revenues50,700 25,350 9,054 (16,296) Expenditures: Current: Public safety1,000 1,000 1,000 - Capital outlay: Public safety- 4,200 4,197 3 Total expenditures1,000 5,200 5,197 3 Excess (Deficiency) of Revenues Over Expenditures 20,15049,700 3,857 (16,293) Other Financing Sources (Uses) Transfers in- - - - Transfers out- (9,813) (9,813) - Net other financing sources (uses)- (9,813) (9,813) - Net Change in Fund Balance 10,33749,700 (5,956) (16,293) Fund Balances - Beginning 11,99111,991 11,991 - Fund Balances - Ending $ 22,32861,691$ 6,035$ (16,293)$ 85 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Intergovernmental revenues545,000$ 555,200$ 576,421$ 21,221$ Investment income5,000 5,000 21,693 16,693 Miscellaneous10,200 - - - Total revenues560,200 560,200 598,114 37,914 Expenditures: Current: Physical environment99,600 142,600 105,477 37,123 Capital outlay: Physical environment473,500 430,500 345,964 84,536 Total expenditures573,100 573,100 451,441 121,659 Excess (Deficiency) of Revenues Over Expenditures (12,900)(12,900) 146,673 159,573 Other Financing Sources (Uses) Transfers in- - - - Transfers out(150,000) (150,000) (150,000) - Net other financing sources (uses)(150,000) (150,000) (150,000) - Net Change in Fund Balance (162,900)(162,900) (3,327) 159,573 Fund Balances - Beginning 376,639376,639 376,639 - Fund Balances - Ending $ 213,739213,739$ 373,312$ 159,573$ 86 CITY OF WINTER SPRINGS, FLORIDA RECREATION AQUISITION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income50$ -$ -$ -$ Total revenues50 - - - Expenditures: Capital outlay: Culture and recreation18,500 18,455 18,455 - Total expenditures18,500 18,455 18,455 - Excess (Deficiency) of Revenues Over Expenditures (18,455)(18,450) (18,455) - Other Financing Sources (Uses) Transfers in- - - - Transfers out- (216) (216) - Net other financing sources (uses)- (216) (216) - Net Change in Fund Balance (18,671)(18,450) (18,671) - Fund Balances - Beginning 18,67118,671 18,671 - Fund Balances - Ending $ -221$ -$ -$ 87 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Licenses and permits280,000$ 822,000$ 958,947$ 136,947$ Investment income8,000 8,000 60,148 52,148 Total revenues288,000 830,000 1,019,095 189,095 Expenditures: Current: Physical environment30,000 40,000 23,361 16,639 Capital outlay: Physical environment1,251,585 1,011,585 561,963 449,622 Total expenditures1,281,585 1,051,585 585,324 466,261 Excess (Deficiency) of Revenues Over Expenditures (221,585)(993,585) 433,771 655,356 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance (221,585)(993,585) 433,771 655,356 Fund Balances - Beginning 1,050,8241,050,824 1,050,824 - Fund Balances - Ending $ 829,23957,239$ 1,484,595$ 655,356$ 88 CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Licenses and permits40,000$ 146,000$ 149,066$ 3,066$ Investment income250 250 2,668 2,418 Total revenues40,250 146,250 151,734 5,484 Expenditures: Current: Public safety- 3,460 3,459 1 Capital outlay: Public safety34,500 - - - Total expenditures34,500 3,460 3,459 1 Excess (Deficiency) of Revenues Over Expenditures 142,7905,750 148,275 5,485 Other Financing Sources (Uses) Transfers in- - - - Transfers out(22,835) (83,347) (83,178) 169 Net other financing sources (uses)(22,835) (83,347) (83,178) 169 Net Change in Fund Balance 59,443(17,085) 65,097 5,654 Fund Balances - Beginning 20,65820,658 20,658 - Fund Balances - Ending $ 80,1013,573$ 85,755$ 5,654$ 89 CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Licenses and permits35,000$ 332,000$ 323,476$ (8,524)$ Investment income1,500 1,500 27,804 26,304 Total revenues36,500 333,500 351,280 17,780 Expenditures: Current: Public safety130,000 101,428 19,087 82,341 Capital outlay: Public safety10,000 13,631 6,130 7,501 Total expenditures140,000 115,059 25,217 89,842 Excess (Deficiency) of Revenues Over Expenditures 218,441(103,500) 326,063 107,622 Other Financing Sources (Uses) Transfers in- - - - Transfers out- (28,401) (28,401) - Net other financing sources (uses)- (28,401) (28,401) - Net Change in Fund Balance 190,040(103,500) 297,662 107,622 Fund Balances - Beginning 458,896458,896 458,896 - Fund Balances - Ending $ 648,936355,396$ 756,558$ 107,622$ 90 CITY OF WINTER SPRINGS, FLORIDA PARKS IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Licenses and permits242,000$ 359,000$ 369,006$ 10,006$ Intergovernmental revenues575,000 - - - Investment income2,000 2,000 15,758 13,758 Total revenues819,000 361,000 384,764 23,764 Expenditures: Current: Culture and recreation- 3,460 3,460 - Capital outlay: Culture and recreation863,200 333,289 104,189 229,100 Total expenditures863,200 336,749 107,649 229,100 Excess (Deficiency) of Revenues Over Expenditures 24,251(44,200) 277,115 252,864 Other Financing Sources (Uses) Transfers in- 70,939 70,939 - Transfers out(45,660) (248,220) (247,877) 343 Net other financing sources (uses)(45,660) (177,281) (176,938) 343 Net Change in Fund Balance (153,030)(89,860) 100,177 253,207 Fund Balances - Beginning 273,342273,342 273,342 - Fund Balances - Ending $ 120,312183,482$ 373,519$ 253,207$ 91 CITY OF WINTER SPRINGS, FLORIDA PUBLIC FACILITIES IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Licenses and permits40,000$ 196,000$ 199,058$ 3,058$ Investment income- - 5,231 5,231 Total revenues40,000 196,000 204,289 8,289 Expenditures: Current: General government- 3,460 3,459 1 Total expenditures- 3,460 3,459 1 Excess (Deficiency) of Revenues Over Expenditures 192,54040,000 200,830 8,290 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance 192,54040,000 200,830 8,290 Fund Balances - Beginning 33,36533,365 33,365 - Fund Balances - Ending $ 225,90573,365$ 234,195$ 8,290$ 92 CITY OF WINTER SPRINGS, FLORIDA MEDICAL TRANSPORT SERVICES SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Charges for services230,000$ 381,600$ 413,805$ 32,205$ Investment income2,500 2,500 7,983 5,483 Total revenues232,500 384,100 421,788 37,688 Expenditures: Current: Public safety183,725 281,225 268,019 13,206 Capital outlay: Public safety29,000 25,500 6,828 18,672 Total expenditures212,725 306,725 274,847 31,878 Excess (Deficiency) of Revenues Over Expenditures 77,37519,775 146,941 69,566 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance 77,37519,775 146,941 69,566 Fund Balances - Beginning 255,608255,608 255,608 - Fund Balances - Ending $ 332,983275,383$ 402,549$ 69,566$ 93 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, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Licenses and permits13,660$ 13,660$ 43,952$ 30,292$ Intergovernmental revenues87,500 31,250 5,000 (26,250) Investment income2,000 2,000 12,582 10,582 Miscellaneous- 500 1,600 1,100 Total revenues103,160 47,410 63,134 15,724 Expenditures: Current: Physical environment226,500 85,500 43,584 41,916 Capital outlay: Physical environment- 17,060 17,060 - Total expenditures226,500 102,560 60,644 41,916 Excess (Deficiency) of Revenues Over Expenditures (55,150)(123,340) 2,490 57,640 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance (55,150)(123,340) 2,490 57,640 Fund Balances - Beginning 254,823254,823 254,823 - Fund Balances - Ending $ 199,673131,483$ 257,313$ 57,640$ 94 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, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments219,000$ 219,000$ 220,289$ 1,289$ Intergovernmental revenues- - 5,363 5,363 Investment income4,750 4,750 18,201 13,451 Total revenues223,750 223,750 243,853 20,103 Expenditures: Current: Physical environment320,700 321,250 261,544 59,706 Total expenditures320,700 321,250 261,544 59,706 Excess (Deficiency) of Revenues Over Expenditures (97,500)(96,950) (17,691) 79,809 Other Financing Sources (Uses) Transfers in- - - - Transfers out(49,300) (49,300) (48,473) 827 Net other financing sources (uses)(49,300) (49,300) (48,473) 827 Net Change in Fund Balance (146,800)(146,250) (66,164) 80,636 Fund Balances - Beginning 344,216344,216 344,216 - Fund Balances - Ending $ 197,416197,966$ 278,052$ 80,636$ 95 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, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments38,600$ 38,600$ 38,002$ (598)$ Investment income300 300 1,674 1,374 Miscellaneous- 2,300 - (2,300) Total revenues38,900 41,200 39,676 (1,524) Expenditures: Current: Physical environment27,201 30,051 27,028 3,023 Total expenditures27,201 30,051 27,028 3,023 Excess (Deficiency) of Revenues Over Expenditures 11,14911,699 12,648 1,499 Other Financing Sources (Uses) Transfers in- - - - Transfers out(11,685) (11,685) (9,408) 2,277 Net other financing sources (uses)(11,685) (11,685) (9,408) 2,277 Net Change in Fund Balance (536)14 3,240 3,776 Fund Balances - Beginning 21,65321,653 21,653 - Fund Balances - Ending $ 21,11721,667$ 24,893$ 3,776$ 96 CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENTS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Intergovernmental revenues1,300,000$ 450,000$ 446,821$ (3,179)$ Investment income- - 45,164 45,164 Total revenues1,300,000 450,000 491,985 41,985 Expenditures: Capital outlay: Physical environment2,375,000 275,371 267,211 8,160 Total expenditures2,375,000 275,371 267,211 8,160 Excess (Deficiency) of Revenues Over Expenditures 174,629(1,075,000) 224,774 50,145 Other Financing Sources (Uses) Transfers in- 8,841 8,840 (1) Transfers out(45,200) (45,200) (45,200) - Net other financing sources (uses)(45,200) (36,359) (36,360) (1) Net Change in Fund Balance 138,270(1,120,200) 188,414 50,144 Fund Balances - Beginning 893,978893,978 893,978 - Fund Balances - Ending $ 1,032,248(226,222)$ 1,082,392$ 50,144$ 97 CITY OF WINTER SPRINGS, FLORIDA EMERGENCY & DISASTER RELIEF SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 24,546$ 24,546$ Miscellaneous- 220,485 220,485 - Total revenues- 220,485 245,031 24,546 Expenditures: Current: General government- 17,565 13,122 4,443 Total expenditures- 17,565 13,122 4,443 Excess (Deficiency) of Revenues Over Expenditures 202,920- 231,909 28,989 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance 202,920- 231,909 28,989 Fund Balances - Beginning 431,556431,556 431,556 - Fund Balances - Ending $ 634,476431,556$ 663,465$ 28,989$ 98 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST - FEDERAL - SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Fines and forfeitures-$ 25,000$ 41,236$ 16,236$ Investment income- 350 5,453 5,103 Total revenues- 25,350 46,689 21,339 Expenditures: Current: Public safety- - - - Total expenditures- - - - Excess (Deficiency) of Revenues Over Expenditures 25,350- 46,689 21,339 Other Financing Sources (Uses) Transfers in- 9,813 9,813 - Transfers out- (14,600) (14,600) - Net other financing sources (uses)- (4,787) (4,787) - Net Change in Fund Balance 20,563- 41,902 21,339 Fund Balances - Beginning -- - - Fund Balances - Ending $ 20,563-$ 41,902$ 21,339$ 99 CITY OF WINTER SPRINGS, FLORIDA HOA PROJECTS - STREETLIGHTING & SIGNAGE - SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 871$ 871$ Miscellaneous- 27,000 27,000 - Total revenues- 27,000 27,871 871 Expenditures: Current: General government- - - - Total expenditures- - - - Excess (Deficiency) of Revenues Over Expenditures 27,000- 27,871 871 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance 27,000- 27,871 871 Fund Balances - Beginning -- - - Fund Balances - Ending $ 27,000-$ 27,871$ 871$ 100 CITY OF WINTER SPRINGS, FLORIDA STORM RESERVE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 881$ 881$ Total revenues- - 881 881 Expenditures: Current: Physical environment- - - - Total expenditures- - - - Excess (Deficiency) of Revenues Over Expenditures -- 881 881 Other Financing Sources (Uses) Transfers in- 77,056 77,078 22 Transfers out- - - - Net other financing sources (uses)- 77,056 77,078 22 Net Change in Fund Balance 77,056- 77,959 903 Fund Balances - Beginning -- - - Fund Balances - Ending $ 77,056-$ 77,959$ 903$ 101 CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 7,027$ 7,027$ Total revenues- - 7,027 7,027 Expenditures: Debt service: Principal retirement150,000 150,000 150,000 - Interest and fiscal charges275,050 275,050 273,535 1,515 Total expenditures425,050 425,050 423,535 1,515 Excess (Deficiency) of Revenues Over Expenditures (425,050)(425,050) (416,508) 8,542 Other Financing Sources (Uses) Transfers in423,000 423,000 423,000 - Transfers out- - - - Net other financing sources (uses)423,000 423,000 423,000 - Net Change in Fund Balance (2,050)(2,050) 6,492 8,542 Fund Balances - Beginning 289,341289,341 289,341 - Fund Balances - Ending $ 287,291287,291$ 295,833$ 8,542$ 102 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 12,514$ 12,514$ Total revenues- - 12,514 12,514 Expenditures: Debt service: Principal retirement440,000 440,000 440,000 - Interest and fiscal charges132,200 132,200 131,472 728 Total expenditures572,200 572,200 571,472 728 Excess (Deficiency) of Revenues Over Expenditures (572,200)(572,200) (558,958) 13,242 Other Financing Sources (Uses) Transfers in592,000 592,000 592,000 - Transfers out- - - - Net other financing sources (uses)592,000 592,000 592,000 - Net Change in Fund Balance 19,80019,800 33,042 13,242 Fund Balances - Beginning 511,534511,534 511,534 - Fund Balances - Ending $ 531,334531,334$ 544,576$ 13,242$ 103 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments58,000$ 58,000$ 13,131$ (44,869)$ Investment income300 300 24,414 24,114 Miscellaneous- - 21,072 21,072 Total revenues58,300 58,300 58,617 317 Expenditures: Current: Physical environment6,600 7,150 7,025 125 Debt service: Principal retirement30,825 30,825 30,825 - Interest and fiscal charges21,180 21,180 21,160 20 Total expenditures58,605 59,155 59,010 145 Excess (Deficiency) of Revenues Over Expenditures (855)(305) (393) 462 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance (855)(305) (393) 462 Fund Balances - Beginning 2,8352,835 2,835 - Fund Balances - Ending $ 1,9802,530$ 2,442$ 462$ 104 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS G.O. DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments219,160$ 219,160$ 219,736$ 576$ Investment income600 600 6,023 5,423 Total revenues219,760 219,760 225,759 5,999 Expenditures: Debt service: Principal retirement65,000 65,000 65,000 - Interest and fiscal charges156,060 156,060 155,983 77 Total expenditures221,060 221,060 220,983 77 Excess (Deficiency) of Revenues Over Expenditures (1,300)(1,300) 4,776 6,076 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance (1,300)(1,300) 4,776 6,076 Fund Balances - Beginning 46,96746,967 46,967 - Fund Balances - Ending $ 45,66745,667$ 51,743$ 6,076$ 105 CITY OF WINTER SPRINGS, FLORIDA 2004 CAPITAL PROJECTS DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ 334$ 375$ 41$ Total revenues- 334 375 41 Expenditures: Debt service: Principal retirement55,790 224,731 224,730 1 Interest and fiscal charges71,880 8,851 8,459 392 Total expenditures127,670 233,582 233,189 393 Excess (Deficiency) of Revenues Over Expenditures (233,248)(127,670) (232,814) 434 Other Financing Sources (Uses) Transfers in128,495 211,330 210,819 (511) Transfers out- - - - Net other financing sources (uses)128,495 211,330 210,819 (511) Net Change in Fund Balance (21,918)825 (21,995) (77) Fund Balances - Beginning 22,03722,037 22,037 - Fund Balances - Ending $ 11922,862$ 42$ (77)$ 106 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments-$ 94,523$ 94,522$ (1)$ Investment income- - 142 142 Total revenues- 94,523 94,664 141 Expenditures: Debt service: Principal retirement- 94,283 93,400 883 Interest and fiscal charges- 240 - 240 Total expenditures- 94,523 93,400 1,123 Excess (Deficiency) of Revenues Over Expenditures -- 1,264 1,264 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance -- 1,264 1,264 Fund Balances - Beginning -- - - Fund Balances - Ending $ --$ 1,264$ 1,264$ 107 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income14,000$ 70,000$ 101,287$ 31,287$ Miscellaneous200,000 50,000 37,000 (13,000) Total revenues214,000 120,000 138,287 18,287 Expenditures: Capital Outlay: Physical environment1,817,000 105,640 47,267 58,373 Total expenditures1,817,000 105,640 47,267 58,373 Excess (Deficiency) of Revenues Over Expenditures 14,360(1,603,000) 91,020 76,660 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance 14,360(1,603,000) 91,020 76,660 Fund Balances - Beginning 2,042,0972,042,097 2,042,097 - Fund Balances - Ending $ 2,056,457439,097$ 2,133,117$ 76,660$ 108 CITY OF WINTER SPRINGS, FLORIDA TLBD IMPROVEMENT CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income200$ -$ -$ -$ Total revenues200 - - - Expenditures: Current: General government- 11,921 11,921 - Total expenditures- 11,921 11,921 - Excess (Deficiency) of Revenues Over Expenditures (11,921)200 (11,921) - Other Financing Sources (Uses) Transfers in- 44,675 44,675 - Transfers out- (52,502) (52,502) - Net other financing sources (uses)- (7,827) (7,827) - Net Change in Fund Balance (19,748)200 (19,748) - Fund Balances - Beginning 19,74819,748 19,748 - Fund Balances - Ending $ -19,948$ -$ -$ 109 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 2,121$ 2,121$ Total revenues- - 2,121 2,121 Expenditures: Capital Outlay: Physical environment- 41,033 7,720 33,313 Total expenditures- 41,033 7,720 33,313 Excess (Deficiency) of Revenues Over Expenditures (41,033)- (5,599) 35,434 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance (41,033)- (5,599) 35,434 Fund Balances - Beginning 43,80543,805 43,805 - Fund Balances - Ending $ 2,77243,805$ 38,206$ 35,434$ 110 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ 20,000$ 43,000$ 23,000$ Miscellaneous- 145,120 145,356 236 Total revenues- 165,120 188,356 23,236 Expenditures: Current: General government25,000 43,888 21,474 22,414 Total expenditures25,000 43,888 21,474 22,414 Excess (Deficiency) of Revenues Over Expenditures 121,232(25,000) 166,882 45,650 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Net other financing sources (uses)- - - - Net Change in Fund Balance 121,232(25,000) 166,882 45,650 Fund Balances - Beginning 815,323815,323 815,323 - Fund Balances - Ending $ 936,555790,323$ 982,205$ 45,650$ 111 CITY OF WINTER SPRINGS, FLORIDA CITY HALL EXPANSION CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Investment income-$ -$ 1,320$ 1,320$ Total revenues- - 1,320 1,320 Expenditures: Capital Outlay: General government900,000 34,500 30,477 4,023 Total expenditures900,000 34,500 30,477 4,023 Excess (Deficiency) of Revenues Over Expenditures (34,500)(900,000) (29,157) 5,343 Other Financing Sources (Uses) Transfers in- - - - Transfers out- - - - Note issued900,000 - - - Net other financing sources (uses)900,000 - - - Net Change in Fund Balance (34,500)- (29,157) 5,343 Fund Balances - Beginning 40,99640,996 40,996 - Fund Balances - Ending $ 6,49640,996$ 11,839$ 5,343$ 112 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II IMPROVEMENT CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Taxes and special assessments-$ 135,000$ 135,000$ -$ Investment income- - 10,094 10,094 Total revenues- 135,000 145,094 10,094 Expenditures: Current: General government- 100 30 70 Debt service: Issuance costs- 20,000 16,933 3,067 Capital Outlay: General government- 179,900 114,762 65,138 Total expenditures- 200,000 131,725 68,275 Excess (Deficiency) of Revenues Over Expenditures (65,000)- 13,369 78,369 Other Financing Sources (Uses) Transfers in- - - - Transfers out- (44,675) (44,675) - Note issued- 430,000 430,000 - Net other financing sources (uses)- 385,325 385,325 - Net Change in Fund Balance 320,325- 398,694 78,369 Fund Balances - Beginning -- - - Fund Balances - Ending $ 320,325-$ 398,694$ 78,369$ 113 CITY OF WINTER SPRINGS, FLORIDA HAZARD MITIGATION GRANT PROGRAM CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Intergovernmental-$ 145,913$ -$ (145,913)$ Investment income- - 968 968 Total revenues- 145,913 968 (144,945) Expenditures: Capital Outlay: General government- 194,551 - 194,551 Total expenditures- 194,551 - 194,551 Excess (Deficiency) of Revenues Over Expenditures (48,638)- 968 49,606 Other Financing Sources (Uses) Transfers in- 194,551 48,638 (145,913) Transfers out- (145,913) - 145,913 Net other financing sources (uses)- 48,638 48,638 - Net Change in Fund Balance -- 49,606 49,606 Fund Balances - Beginning -- - - Fund Balances - Ending $ --$ 49,606$ 49,606$ 114 CITY OF WINTER SPRINGS, FLORIDA SENIOR CENTER EXPANSION CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2006 Variance with Budgeted AmountsFinal Budget- ActualPositive OriginalFinalAmounts(Negative) Revenues: Intergovernmental-$ 100,000$ -$ (100,000)$ Investment income- - 1,949 1,949 Total revenues- 100,000 1,949 (98,051) Expenditures: Capital Outlay: Culture and recreation- 100,000 38,964 61,036 Total expenditures- 100,000 38,964 61,036 Excess (Deficiency) of Revenues Over Expenditures -- (37,015) (37,015) Other Financing Sources (Uses) Transfers in- 100,000 100,000 - Transfers out- - - - Net other financing sources (uses)- 100,000 100,000 - Net Change in Fund Balance 100,000- 62,985 (37,015) Fund Balances - Beginning -- - - Fund Balances - Ending $ 100,000-$ 62,985$ (37,015)$ 115 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, 2006 Prior Year Culture Function General Public Physical nd Not A Government Safety Environment Recreation vailable Total A Land -$ -$ 369,941$ 3,682,379$ 5,796,396$ 9,848,716$ Buildings 1,827,348 3,141,788 162,950 395,824 - 5,527,910 Improvements 32,989 185,104 3,269,284 7,640,036 - 11,127,413 Machinery & equipment 1,512,470 4,441,607 1,197,946 920,279 - 8,072,302 Infrastructure - - 43,368,094 - - 43,368,094 Construction in progress - - 3,337,129 63,916 - 3,401,045 Total 3,372,807$ 7,768,499$ 51,705,344$ 12,702,434$ 5,796,396$ 81,345,480$ Deletions Balance and Balance 9/30/05dditions Transfers 9/30/06 A General Government 3,216,076$ 298,831$ 142,100$ 3,372,807$ Public Safety 7,483,414 382,638 97,553 7,768,499 Physical Environment 48,046,646 4,739,423 1,080,725 51,705,344 Culture & Recreation 12,518,751 609,921 426,238 12,702,434 Prior year function not available 5,796,396 - - 5,796,396 Total 77,061,283$ 6,030,813$ 1,746,616$ 81,345,480$ 116 This page intentionally left blank. STATISTICAL SECTION The statistical schedules differ from other financial statement presentations because they generally disclose more than one fiscal year and may present non-accounting data, such as social and economic data and financial trends of the City. This page intentionally left blank. STATISTICAL SECTION LIST OF SCHEDULES Net Assets by Component Changes in Net Assets Governmental Activities Tax Revenues by Source Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Assessed Value and Estimated Actual Value of Taxable Property Property Tax Rates, Direct and Overlapping Governments Special Assessment Billings and Collections Principal Property Taxpayers Property Tax Levies and Collections Legal Debt Margin Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Ratio of Outstanding Debt by Type Direct and Overlapping Governmental Activities Debt Pledged-Revenue Coverage Demographic and Economic Statistics Principal Employers Full-time Equivalent City Government Employees by Function Operating Indicators by Function Capital Asset Statistics by Function This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURC E Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal YearProperty TaxFranchise TaxUtility TaxTotal 19972,784$ 947$ 1,485$ 5,216$ 19982,966 1,064 1,677 5,707 19993,101 1,086 1,733 5,920 20003,324 1,402 2,074 6,800 20013,626 1,587 2,493 7,706 20024,278 1,595 3,403 9,276 20035,057 1,304 3,461 9,822 20045,653 1,360 3,447 10,460 20056,198 1,480 3,504 11,182 20067,383 1,919 3,832 13,134 Taxes included in Unrestricted Intergovernmental Revenues State Revenue Fiscal YearSales TaxSharingOtherTotal 19971,451$ 555$ 11$ 2,017$ 19981,612 601 23 2,236 19991,780 583 49 2,412 20001,908 647 86 2,641 20011,919 681 86 2,686 20022,128 691 131 2,950 20032,134 764 136 3,034 20042,258 843 142 3,243 20052,447 1,076 158 3,681 20062,701 1,123 147 3,971 120 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX RATES 1 DIRECT AND OVERLAPPINGGOVERNMENTS 2 Last Ten Fiscal Years Overlapping Rates St. John's Winter SpringsSeminole CountySchool District Water DebtDebtTotalDebtTotal Manage-Total Direct FiscalOperatingServiceTotal City OperatingServiceCountyOperatingServiceSchool ment& Overlap- YearMillageMillageMillageMillageMillageMillageMillageMillageMillage Districtping Rates 19973.60830.00003.60835.16380.22515.38899.38800.920010.30800.482019.7872 19983.60000.00003.60005.16380.19875.36259.15600.880010.03600.482019.4805 19993.54950.00003.54955.15790.12345.28139.10200.81609.91800.482019.2308 20003.54950.00003.54954.99890.11705.11598.78500.75609.54100.482018.6884 20013.54000.00003.54004.99890.10835.10728.65500.69009.34500.472018.4642 20023.77080.00003.77084.99890.22085.21978.52300.63909.16200.462018.6145 20034.16580.00004.16584.99890.20865.20758.47900.52109.00000.462018.8353 20044.30000.25004.55004.99890.19105.18998.24100.49508.73600.462018.9379 20054.30000.25004.55004.99890.17215.17108.12700.38508.51200.462018.6950 20064.61260.13744.75004.99890.20415.20307.96500.00007.96500.462018.3800 Note Source: Seminole County Tax Collector (www.seminoletax.org) 1 Overlapping rates are those of local and county governments that apply to property owners within the City of Winter Springs. 2 Taxes levied for the fiscal year are based on the prior year taxable value. 124 CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Fiscal Tax Year Year Oak ForestTuskawilla Lighting and Beautification (TLBD) ssessmensssessmens AtAt AssessmentsAssessments 11 CollectedDifferenceCollectedDifference BilledBilled 19992000-$ -$ -$ 459,438$ 442,916$ 16,522$ 2000200182,651 79,689 2,962 - 232 (232) 2001200282,225 80,062 2,163 459,090 446,121 12,969 2002200382,678 78,809 3,869 393,704 376,256 17,448 2003200483,344 80,400 2,944 391,976 377,978 13,998 2004200599,595 97,388 2,207 390,204 379,601 10,603 2005200699,595 95,977 3,618 390,204 377,175 13,029 Note 1 Includes prepayments. Special Assessment Debt Issued: Oak ForestJune 2000 (Refinanced in June of 2004) TLBDMay 2001 TLBD Phase IIFebruary 2006; No assessment levied until Fiscal Year 2007. 125 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS September 30, 2006 (amounts expressed in thousands) 20061997 PercentagePercentage of Total of Total TaxableTaxableTaxableTaxable AssessedAssessedAssessedAssessed Taxpayer ValueRankValueValueRankValue Golf Terrace, Limited27,077$ 1 1.63%10,480$ 11.31% Florida Power Corporation20,149 2 1.21%8,019 21.00% Courtney Springs LP14,660 3 0.88%- - Capital Green I LLC14,496 4 0.87%- - United Dominion Realty Trust8,236 5 0.50%- - Hacienda Village Co-op Inc.4,974 6 0.30%4,817 40.60% LTO Kays Spring LLC4,346 7 0.26%- - Metro Church of Christ Inc.4,107 8 0.25%- - Bellsouth Telecommunications3,609 9 0.22%- - Brighthouse Networks3,572 10 0.22%- - Seville Holdings Association, Limited- - 6,312 30.79% Pulte Home Corporation- - 3,841 50.48% DR Horton, Inc.- - 3,530 60.44% Richland Tuscawilla, Limited- - 2,870 70.36% Florida Country Clubs, Inc.- - 2,665 80.33% Morrison Homes of Florida, Inc.- - 2,473 90.31% Cablevision of Central Florida- - 2,427 100.30% Totals105,226$ 6.34%47,434$ 5.92% Source: Seminole County Property Appraiser (www.scpafl.org) 126 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) Collected within the Fiscal Year of the LevyTotal Collections to Date Fiscal Year Collections in Total Tax Levy EndedPercentage of SubsequentPercentage of 12 Amount September 30,for Fiscal Year LevyYearsAmountLevy 19972,882,773$ 2,786,845$ 96.67%3$ 2,786,848$ 96.67% 19983,074,799 2,960,328 96.28%9 2,960,337 96.28% 19993,215,932 3,097,939 96.33%4 3,097,943 96.33% 20003,453,596 3,333,199 96.51%3 3,333,202 96.51% 20013,771,445 3,618,281 95.94%12 3,618,293 95.94% 20024,467,419 4,270,430 95.59%68 4,270,498 95.59% 20035,277,940 5,084,586 96.34%12 5,084,598 96.34% 3 20046,215,233 96.26%1725,982,757 5,982,929 96.26% 3 20056,748,179 96.22%186,493,143 6,493,161 96.22% 3 20067,890,100 96.23%-7,592,952 7,592,952 96.23% Note Gross taxes before discount of 1% - 4%, depending on month paid; Source: Seminole County 1 Property Appraiser (www.scpafl.org) 2 Source: Seminole County Tax Collector (www.seminoletax.org) 3 Includes voted debt service of not to exceed .25 mills for Central Winds General Obligation Debt 127 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2006 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. 128 CITY OF WINTER SPRINGS, FLORIDA RATIO OF NET GENERAL OBLIGATION BONDED DEB T TO ASSESSED VALUE AND NET GENERAL OBLIGATIO N BONDED DEBT PER CAPIT A Last Ten Fiscal Years Ratio of Net Bonded GrossNetDebt toNet Bonded FiscalAssessedBondedLess DebtBondedAssessedDebt per YearPopulation (1)Value (2)Debt (3)Service Fund (4)DebtValueCapita 199727,466 798,928,000$ -$ -$ -$ 0.000%-$ 199828,404 854,119,000 - - - 0.000%- 199929,220 906,033,000 - - - 0.000%- 200030,860 972,981,000 - - - 0.000%- 200131,666 1,065,390,000 - - - 0.000%- 200232,082 1,184,740,000 3,400,000 23,275 3,376,725 0.285%105 200332,572 1,266,969,000 3,335,000 24,260 3,310,740 0.261%102 200432,955 1,365,985,000 3,270,000 53,373 3,216,627 0.235%98 200533,321 1,483,116,250 3,205,000 46,967 3,158,033 0.213%95 200634,621 1,661,074,000 3,140,000 51,743 3,088,257 0.186%89 Note (1) Source: East Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research (2) Source: The Assessed and Estimated Value of Taxable Property table in this section (3) Amount does not include special assessment bonds and revenue bonds (4) Amount available for repayment of limited general obligation bonds, which were issued in 2002 129 CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2006 (amounts expressed in thousands) Estimated Estimated Share of Percentage Overlapping 1 Debt OutstandingApplicableDebt Governmental Unit Overlapping Debt: Seminole County General Obligation Debt26,775$ 6.93%1,856$ Subtotal, overlapping debt Direct Debt: 2 City of Winter Springs General Obligation Debt 100%3,1403,140 Total direct and overlapping debt29,915$ 4,996$ Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board 1 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. 2 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. 131 CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years PersonalEducation IncomeLevel in Per Capita (amountsYears of expressed in PersonalMedianFormalSchoolUnemploy- 11 1112 3 Fiscal YearPopulationthousands)IncomeAgeSchoolingEnrollmentment Rate 199727,466 $****3,9883.2% 199828,404 ****5,9672.6% 199929,220 ****5,7112.9% 200030,860 785,726 25,461 37.213.685,7762.6% 200131,666 ****6,4213.6% 200232,082 ****6,5085.0% 200332,572 ****7,4134.5% 200432,955 ****7,4764.3% 200533,321 ****7,4923.5% 200634,621 979,428 28,290 39.313.977,3423.0% *Data not available Note 1 Surce: Metro Orlando Economic Development Commission (www.orlandoedc.com) 2 Source: Seminole County Public Schools 3 Source: US Department of Labor, Bureau of Labor Statistics (data.bls.gov) 133 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 12 20061997 PercentageTaxablePercentage of Total City Assessedof Total City EmployeesRankEmploymentValueRankEmployment Employer Seminole County School Board1,601 1 30.79%*** City of Winter Springs296 2 5.69%*** Publix in Town Center136 3 2.62%*** Modern Plumbing107 4 2.06%*** Tuscawilla Country Club90 5 1.73%*** McDonald's in Town Center37 6 0.71%*** Walgreens at SR 43430 7 0.58%*** Wendy's in Town Center28 8 0.54%*** Division of Motor Vehicles20 9 0.38%*** Blue Moon Motor Sports16 10 0.31%*** Total2,361 45.41% Source: Manager's of Business Organizations Note The City of Winter Springs has an estimated daytime population of 5,200 with 1 approximately 650 business establishments as of 9/30/2006. 2 * Information is not available. 134 CITY OF WINTER SPRINGS, FLORIDA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-time Equivalent Employees as of September 30, Function1997199819992000200120022003200420052006 1 Development Services *6 6 6 6 6 8 8 10 10 General Government*31 32 35 36 38 36 37 41 41 Public Safety: Police Sworn Officers*54 54 54 54 59 59 64 64 70 Non sworn officers*- - - - - - - - - 2 Civilians *18 18 20 20 20 20 20 20 20 Fire Firefighters and officers*38 38 38 38 41 49 50 50 51 Civilians*1 1 1 1 1 1 2 2 2 Public Works*20 21 22 21 22 21 23 23 21 Culture and Recreation*19 20 20 20 19 20 21 22 22 Utilities*33 33 34 35 36 35 40 42 42 Stormwater*4 4 5 5 6 7 7 7 9 Total- 224 227 235 236 248 256 272 281 288 Part-time Employees**25222424*232224 Note *Data not available Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety: Community Development - Building. 1 Police civilians include emergency communications center operations personnel. 2 135 This page intentionally left blank. REPORTS ON INTERNAL CONTROL AND COMPLIANCE This page intentionally left blank.