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HomeMy WebLinkAbout2000 09 11 Regular B Comprehensive Annual Financial Report COMMISSION AGENDA ITEM B CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X September 11, 2000 Meeting ~..(:.,-- MGR.,z..Y\ IDEPT ~ Authorization REQUEST: The Finance Department is requesting City Commission acceptance of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 1999. PURPOSE: The presentation by the City Auditors of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 1999. 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 alone and to more accurately reflect Budget vs. Actual expenses in the Financial Statements. RECOMMENDATION: Acceptance of the CAFR for the fiscal year ended 9/30/99 by the City Commission. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/99 including the audited financial statements and the audit opinion. COMMISSION ACTION: v v -...J "--' \w,/ '-.../ v CITY OF WINTER SPRINGS, FLORIDA v v v .'=.J v v v v v v v V v v '-...../ v v v 0' \..,., \....v 'v v v '-...../ '-d \."..I COMPREHENSIVE ANNUAL FINANCIAL REPORT '--" ~ ~ v v FOR THE YEAR ENDED SEPTEMBER 30, 1999 v v v ( '-" . . . . . . . . . . . . . . . . . . . . . . . . - W' .a W' .a .. ... - ... W' ... - ... - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1999 TABLE OF CONTENTS Page IN'IRODUCTb'rf . i.i, _.,.",,';'..'_ _"'.:'.';""- .. _0';,"_" J~TIQ~;:",~::.'"'''''' ., ;; 1;'L.,:.:' . :~. ,.. ::""-',. LETTER OF TRANSMITTAL LIST OF PRINCIPAL OFFICIALS 9 ORGANIZATIONAL CHART 10 CERTIFICATE OF ACHIEVEMENT 11 'f;=INANCIA[ SECTIONil' ' < - ,. .. , .. -'.' - F -, --.. ; - ",..,. .. " INDEPENDENT AUDITORS' REPORT 12 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups 13 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types 17 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 18 Statement of Revenues, Expenses, and Changes in Retained Earnings - Proprietary Fund Type 22 Statement of Cash Flows - Proprietary Fund Type 23 Notes to Financial Statements 24 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES: -- Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual 42 45 - - - -- - - - 48 - - -- ...... - -- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1999 TABLE OF CONTENTS Page Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 56 57 58 Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 63 64 65 Schedule of Expenditures - General Fund - Budget and Actual 67 Schedule of Revenues and Expenses - Budget and Actual - Enterprise Fund - Water and Sewer Utility - Operating Account 68 Schedule of Supplemental Cash Flows - Enterprise Fund - Water and Sewer Utility 71 S1;~TI$in~~'~..~E:CTIQt~,:.!,;[;\;:1;:F.;,. TABLE 1 - GENERAL GOVERNMENT EXPENDITURES BY FUNCTION 72 TABLE 2 - GENERAL GOVERNMENT REVENUES BY SOURCE 73 TABLE 3 - PROPERTY TAX LEVIES AND COLLECTIONS 74 TABLE 4 - ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 75 TABLE 5 - PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS 76 ... ... ... ... ... ... .- ... TABLE 6 - COMPUTATION OF DIRECT AND OVERLAPPING DEBT 77 TABLE 7 - REVENUE BOND COVERAGE - WATER AND SEWER REVENUE BONDS 78 . ... ... ... - ... ... . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1999 TABLE OF CONTENTS Page TABLE 8 - DEMOGRAPHIC STATISTICS 79 TABLE 9 - PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS 81 TABLE 10 - PRINCIPAL TAXPAYERS 82 TABLE 11 - MISCELLANEOUS STATISTICS 83 O;TfI~R:Ri;P:~t{!$.;: ~,::';T~;: [' "h:iil INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 84 INDEPENDENT AUDITORS' MANAGEMENT LEITER 85 .. ... ... .. .. .. ... ... ... ... ... - - - - - - - - - - - - - - - .- -- - - - - - -- .- -- -- . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Ronald W. McLemore City Manager August 25, 2000 Honorable Mayor, Members of the City Commission, And the Citizens of the City of Winter Springs, Florida Submitted herein is the comprehensive annual financial report of the City of Winter Springs, Florida (City) for the fiscal year ended September 30, 1999. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. .. ..... .. ..... .. - ... - ... - - The comprehensive annual financial report has been prepared in accordance with guidelines established by the Governmental Accounting Standards Board (GAS B) and the Government Finance Officers Association (GFOA). The report is presented in four sections as follows: 1. An Introductory Section, which is unaudited, including the City Manager's and Finance Director's letter of transmittal, an organizational chart and a list of the City's principal elected and appointed officials; - - - - 2. A Financial Section, including the financial statements and supplemental data of the City accompanied by our independent auditors' report; - - - - 3. A Statistical Section, which is unaudited, including a selection of data depicting the financial history of the City on a multi-year basis, information on overlapping governments, and demographic and miscellaneous information; - - - - - - - 4. An Other Reports Section, including the independent auditors' report on compliance and internal control over financial reporting and the independent auditors' management letter. - - - - - - This report includes all funds and account groups of the City. The City provides a full range of services including police and fire protection; utility services; the construction and maintenance of highways, streets and infrastructures; recreational activities and planning and community development. -- - 1 . . . . . . . . . . . . . ECONOMIC CONDITION AND OUTLOOK The City, 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 is primarily a retail, office and residential area with a small amount of light industry and commercial business. The City currently has a land area of 14.6 square miles and a population of 29,220. 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 City's total assessed valuation for real and personal property increased 8.4% from the prior year and almost 58% since 1991. This increase in valuatiDns resulted in an increased tax levy of $141,133 over last year and $1,145,386 since 1991. The City's pDpulation continues to strongly increase, adding 816 citizens or an increase of 2.87% during 1999. The population has increased 32% from that of ten years ago. As indicated by these factors, the City currently enjoys a favorable economic environment and local indicators still point to a continued trend of increased growth. This increased growth helps the City to maintain a moderate property tax rate, which was at 3.5495 mills during 1999. The City's millage rate has continued its decreasing trend since 1994. - ... - - - - The City has developed a comprehensive plan, which incorporates many measures to attract new growth. The City is interested in attracting and nurturing new growth while at the same time preserving the physical amenities and quality of life. Since the City is linked to a multi-lane restricted access road system (the "Greene Way"), it offers its citizens the advantages of suburban lifestyles and easy access to centralized business areas and tourist attractions throughout the metropolitan Orlando area. The Greene Way stimulates the outflow of businesses to suburban areas, enhancing the City's economic development. -. - -. - -. .- -- MAJOR INITIATIVES The City staff has once again been involved in a variety of projects throughout the year, which indicates the City's desire to make Winter Springs a community in which its citizens desire to live, work and play. Significant projects include the following: The City continued with its upgrades to the Commission Chambers audio/visual system during 1999. The camera, which enables the citizens of Winter Springs to view the various documents presented to the Commission, was updated allowing for an even clearer picture of documents. In addition, the system was updated to accommodate the use of a laptop. The City has also made progress on its five-year plan to upgrade its data processing equipment. During the year, upgrades were made to the server equipment, personal computers and network equipment as necessary including those upgrades necessary for Y2K compliance. The City Hall network was completed as part of its five-year plan. Specifically, all City Hall computers were networked; the Police Department, Fire Department and Public Works Department networks, which were three separate networks, were made into one large network and connected via fiber optic cabling; and the City installed routers and -2 . . . . . . . . . . . . . enabled e-mail capabilities. These improvements allow City employees to communicate and work more effectively and efficiently. The Police Department installed a new Computed Aided Dispatch and Records Management System. The software package includes an integrated record keeping module for administration, training, vehicle maintenance, property and evidence. The system is much faster and allows for a broader search of statistical information. The modular approach allows for future expansion as our City and our needs grow. .a .. ... ... - ... ... - ... - - - The City's medical transport program, provided by the Fire Department, is continuing to be a successful program, providing excellent care at a reasonable rate for it's citizens. The Fire Department provides this transportation at a flat rate of $185 for residents, as opposed to the privatized base rate of $325. The Fire Department has transported over 2,991 citizens at savings of over $418,740 to the community since initiation of the program in January 1996. The transport service is still fully funded by user fees, requiring no financial support from general taxation. During FY 99, the City's Fire Department replaced a light duty transport vehicle with a medium duty transport vehicle at a cost of $135,000, funded entirely by the medical transport fee funds. - - - The Water and Sewer Utility completed numerous capital improvement projects including: interconnecting the East and West reclaimed water systems, obtaining EPA approval of a risk management plan for gas chlorine storage, extending water and sewer to the Belle Avenue commercial/industrial district, master planning the water and sewer extensions for the Town Center, replacing and increasing the capacity of the aerator at Water Treatment Plant #2, and installing a new 10" water line on Panama Road to loop the system and provide service to new customers. - - - - A rate study of the water, sewer, reclaimed, and stormwater fees and charges started in April and will be finished in FY 2000. The study will determine if current rates are sufficient to meet projected operational and capital needs. The City generated a 20-year Capital Improvements Plan of all conceivable projects as an aid for projections. Funds from the Transportation Impact Fee Fund were used to construct drainage and paving improvements to Panama Road and also to perform intersection improvements at Hayes Road and S.R. 434. These improvements addressed traffic circulation and accessibility problems in the collector road system. Transportation Improvement Fund projects completed this year included bringing the diesel and gasoline fuel containment piping at City Hall into compliance and investing over $100,000 in resurfacing existing streets. A traffic calming program was initiated with the installation of 11 median diverters and traffic circles on various City streets. The assDciated landscaping and architectural features has improved the aesthetics in the neighborhoods and acted as a deterrent to cut though traffic. We will continue monitoring the success of this program to identify other potential neighborhood streets, which could benefit from the installation of these devices. A beautification of S.R. 434 was initiated with the notification from FDOT of the award of a "Florida Highway Beautiful" grant for installing landscaping and irrigation in the medians. The matching grant pays for all materials with the City providing in kind labor. The 18-month project was completed in February 2000. - 3 . . . . . . . FUTURE PROJECTS .. .. .. ... .. .. ... - The City is constantly implementing many projects whose ultimate goals are to provide our citizens with benefits. During 1999, the City issued $7,998,970 in Improvement Refunding Revenue Bonds to fund projects such as the 434 Beautification Project, Town Center Trail Park Development, Park Improvements, the Urban Rehabilitation Fund, Town Center Planning and Design Reimbursement and the Traffic Calming Project. Listed below are some new projects, which have been started by the City, as well as a few that are planned. ... - ... - - - Community Development - . Town Center - During FY 1999, the City was still in the formative stage of designing a new 230-acre Town Center along State Road 434 at Tuskawilla Road. The Town Center is expected to attract commercial, office, and residential and public uses. Sites have been identified as possible locations for a new City Hall, library, and hotel and convention center. The Town Center will be a public/private partnership, with the public sector providing the infrastructure and the private sector constructing and marketing the project. Many developers have expressed an interest in working with the City on this project. - - - . Moss Cove Redevelopment Project - The City CommissiDn and the Wyman Fields Foundation have entered into a partnership arrangement to acquire and rehabilitate 232 apartments/tDwnhouses in and around Rhoden Lane, LoriAnn Lane and Cory Lane. Once rehabilitated inside and out, the units will be sold as condominiums. The partnership is utilizing grants and funds from the Community Development Block Grant program and the State Housing Initiative Program. Financing has been arranged through Peoples First Community Bank. Parks and Recreation . Park Improvements - The $2.2 million park improvement plan is well underway. The plan includes improvements at Central Winds Park, Grizzly Field, Moss Park, Sam Smith Park, Sunshine Park, Torcaso Park, Trotwood Park, and Winding Hollow Park. Improvements include pavilions, tot and youth playground equipment, nature trails, restrooms, concession stand, ballfield upgrades, landscaping, signage, handicap access, and parking improvements. Park Improvements are scheduled to be completed during FY 2000. Utility Department . The Utility Department has a number of projects they plan to complete in the next fiscal year as well as a number of projects they anticipate will begin. A synopsis of the projects is as follows: completion and implementation of the utility and stormwater rate study, wastewater plant blower replacement, lift station telemetry, Tuskawilla Road water main interconnection, adding 600 customers to th~ reclaimed water system, Town Center infrastructure design, new traffic signals and road resurfacing. -4 . . . . . . . . . . FINANCIAL INFORMATION ... ... ... ... - - - - Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and that the valuation of costs and benefits requires estimates and judgments by management. - In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. Activities of the general fund, special revenue funds, debt service funds, capital project funds and the enterprise fund are included in the annual appropriated budget. Budgets for governmental fund types are prepared on a basis that are consistent with generally accepted accounting principles. The legal level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. The government also maintains an encumbrance accounting system as one method of maintaining budgetary control. -- - -- - -- - -- - -- -- As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Government Functions and General Fund Balance The following schedule presents a summary of general fund, special revenue funds, capital project funds and debt service funds revenues for the years September 30, 1999 and 1998. Revenues and Amount of Percent of Other Financing 1999 Percent 1998 Increase Increase Sources Amount of Total Amount (Decrease) (Decrease) Taxes $6,298,975 23.7 $5,967,375 $331,768 3.0 Licenses and permits 1,762,848 6.6 943,220 819,786 7.4 Intergovernmental 2,918,244 11.0 2,583,849 334,395 3.0 Charges for Services 914,748 3.4 742,766 171,982 1.6 Fines 249,206 .9 183,714 65,492 .6 Interest 383,955 1.4 447,343 (63,371 ) (.5) Miscellaneous 927,367 3.5 737,539 189,828 1.7 Operating transfers in 5,082,709 19.1 3,925,725 1,156,984 10.5 Proceeds from bond issuance 7.999.608 30.4 - 7.999.608 72.7 Total $26.537.660 100.0 $15.531.531 $11.006.472 100.0 - 5 . . . . . . . . . . . . . . . . . . . . . The largest dollar-value and percentage increase in recurring revenues came from licenses and permits. Revenues from licenses and permits increased 7.4% as a result of our City's growth. The largest dollar-value and percentage increase in non-recurring revenues came from the proceeds of the 1999 Bond Issue as discussed in the Future Projects section. The following schedule presents a summary of general fund, special revenue fund, debt service fund, and capital projects fund expenditures for the fiscal years ended September 30, 1999 and 1998: - ... ... ... .... ... .... - - - - Expenditures and Amount of Percent of Other Financing Percent Increase Increase Uses 1999 Amount of Total 1998 Amount (Decrease) (Decrease) General government $2,726,281 12.7 $2,591,811 $134,774 2.9 Public safety 5,355,195 24.9 4,725,544 629,738 13.7 Transportation 1,119,185 5.2 1,159,944 (40,759) (.9) Culture and recreation 1,042,556 4.8 843,115 199,441 4.3 Capital outlay 1,792,208 8.3 2,705,800 (913,640) (19.8) Debt service 2,057,757 9.6 967,605 1,090,152 23.6 Operating transfers out 5,107,709 23.7 3,925,725 1,181,984 25.6 Payments to escrow agent 2.328.288 10.8 - 2.328.288 50.6 Total $21.529.179 100.0 $16.919.544 $4.609.978 100.0 - The largest dollar-value and percentage increase in recurring expenditures was due to public safety expenditures, a substantial portion of which related to the hiring of police officers under the Police Departments COPS grant program. Note that debt service includes some non-recurring expenditures as well as payment the escrow agent. Included in these amounts are payments made in conjunction with the refunding of the 1983 bonds as well as the 1999 bond issuance. - - - - - - General government function includes the offices of the City Commission, City Manager and City Clerk, the Human Resource Department, the Finance Department, the Purchasing Department, and the Community Development Department. It also includes expenditures from Special Revenue Funds, such as Streetlighting Fund, Stormwater Utility Fund, Solid Waste Fund, and the Electric Franchise Fee Fund. General Fund Balance The fund balance of the general fund increased 4.8% or $130,473 in 1999. One of the goals of the City over the next few fiscal years is to continue tD increase the fund balance to provide enhanced stability for its citizens. - 6 . . . . . . . . . . . . . . . . .. ., Enterprise Operations The City's enterprise operations are comprised of the City's water and sewer utility. Water revenues increased 12.3% to $2,395,441, while the number of customers increased by 2.0% to 11,196. Sewer operations revenues increased approximately 1.5% to $2,989,996. As in prior years, the water/sewer utility made payments to the general fund (included in miscellaneous revenues) for those staff salaries and related benefits that are budgeted and expended in the general fund for services either directly or indirectly provided on behalf of the utility. Cash Management During the current fiscal year, the City invested in Treasury Bills and Certificates of Deposit. The average yield on these investments was approximately 5%, and interest income was $636,427 in 1999. The City's deferred compensation plans, which allow employees to defer a portion of their salary until future years, are managed by PEBSCO and ICMA. Debt Administration . . The City had nine of bonds outstanding as of September 30, 1999. Three of which have been advanced refunded, which means that sufficient funds have been deposited into irrevocable trust accounts which when combined with trust account interest will meet current and future debt service requirements for the refunded issues. This transaction releases liens by bondholders against City revenues and, for all intents and purposes, releases the City of its obligations to the bondholders. As a result, those issues which have been refunded are not recorded in the City's financial recDrds. Note 5d of the notes to the financial statements provides a chart that details the defeased bonds. During FY 1999, the City issued Series 1999 Improvement Refunding Revenue Bonds, in conjunction with that issuance the City refunded its Series 1989 bonds. Note 5 of the notes to the financial statements provides information regarding all bonds outstanding as of September 30, 1999. ... ... ... ... - - - -- - -- -- The City entered into a capital lease for a medical transport during the year, the amount outstanding at September 30, 1999 under capital lease is $122,312. Risk Management During the ordinary course of its operations, the City is exposed to various risks of losses. The City employs a risk manager who has established various control techniques to reasonably ensure that all employees are aware of their responsibilities to minimize accident-related losses by using caution in their jobs. Third-party coverage is currently maintained for individual workers' compensation claims. - 7 . . . . . . . . . . INDEPENDENT AUDIT State Statutes require an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. The City's auditors, Deloitte & Touche LLP, have conducted the audit and issued their report, which can be found in the financial section of this report. ... .. AWARDS . . The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the year ended September 30, 1998. The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial repDrts. This was the second time that the City has applied for and received this award. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. This report satisfied both generally accepted accounting principles and applicable legal requirements. ... .... - .... - .... - - - - .- - - - .- - ACKNOWLEDGEMENTS .- .- The preparation of this report could not have been accomplished without the efficient and dedicated efforts of the entire staff of the Finance Department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Other City departments also contributed significantly by helping to ensure the accuracy and integrity of accounting information compiled throughout the year. In closing, we would also like to thank the Mayor and Members of the City Commission for their interest and support in planning and conducting the operations of the City in a respDnsible and progressive manner. Respectfully submitted, #~;J7J7~~ Ronald W. McLemore City Manager 'd-..D &. C .~~- Louise C. Frangoul Finance Director - 8 . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL OFFICERS AS OF SEPTEMBER 30,1999 ELECTED OFFICIALS MAYOR VICE-MAYOR/COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER PaulP.Partyka Cindy Gennell Robert S. Miller Michael S. Blake Edward Martinez, Jr. David McLeod ... ... ... ... ... ... ... ... ... ... - - ... - - - - - - APPOINTED OFFICIALS CITY MANAGER CITY CLERK FINANCE DIRECTOR INFORMATION SERVICES POLICE CHIEF FIRE CHIEF UTILITY/PUBLIC WORKS DIRECTOR COMMUNITY DEVELOPMENT DIRECTOR PARKS AND RECREATION DIRECTOR Ronald McLemore Andrea Lorenzo-Luaces Harry Martin Joanne Dalka Daniel Kerr Timothy Lallathin Kipton Lockcuff Charles C. Carrington Chuck Pula - - LEGAL COUNSEL Anthony Garganese Amari and Theriac, P.A. FINANCIAL ADVISOR Jim Lentz First Southwest Company AUDITORS Deloitte & Touche LLP -9 Citizens of Winter Springs I Mayor and City Commission Advisory Boards City Manager City Attorney City Clerk Information Services I I Finance Director Community Development Fire Chief Police Chief Public Works/Utility Parks & Recreation Director Director Director -Administration - Accounting -Purchasing -Human Resources -Revenue -Utility Billing -Meter Services -Risk Management City of Winter Springs Organizational Chart - Administration -Comprehensive Planning - Land Management -Code Enforcement - Engineering Services - Building Permits Inspections - Administration - Fire/Rescue -Fire Prevention - Emergency Medical Services -Administration -Stormwater -Transportation -Water Resource Mgmt. Water Wastewater - Administration -Civic/Senior Center Operations -ParksIField Maint. -Athletics - Recreation Programs -Concession Services -Administration -Records -Communications -Patrol - Investigations - Youth Services * The City Manager is appointed by the Commission. * The City Clerk is appointed by the Mayor with ratification of the City Commission and works under the direction of the City Manager. *The City Attorney is appointed by the Mayor with ratification of the City Commission and works under the direction of the Commission. * Advisory Boards are appointed by the Mayor and Commission and work under the direction of the City Commission. .......................~.t4.4.4~4~4.4~4~4~4~4~... ~~ ~~~.~.~. ~~ ~l I . . . . . . . . . . . . . . . . . . . . . . . . Certificate of Achievement for Excellence in Financial Reporting Presented to City of Winter Springs, Florida ..... ... ..... ... ..... - - - - ... - - - - - For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1998 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. - ~~ .3~~~ ~ L President jJ#:?-/~ Executive Director - - -. - - - - - - -. . . . . . . . . . . . . . . . . . a .. Deloitte & Touche LLP Suite 1800 200 South Orange Avenue Orlando, Florida 32801 Certified Public Accountants Tel: (407) 246 8200 Fax: (407) 422 0936 www.us.deloitte.com Oeloitte & Touche INDEPENDENT AUDITORS' REPORT The Honorable Mayor and City Commissioners of the City of Winter Springs, Florida: We have audited the accompanying general purpose financial statements of the City of Winter Springs, Florida (the "City") as of September 30, 1999 and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. . We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ... .. ... - - - - - - - - - In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City at September 30, 1999, and the results of its operations and the cash flows of its proprietary fund type for the year then ended in confonnity with accounting principles generally accepted in the United States of America. - Our audit was conducted for the purpose offonning an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements and schedules listed in the foregoing table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. These financial statements and schedules are also the responsibility of the management of the City. Such additional infonnation has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. - - - The statistical data on pages 72-83 is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City. Such additional infonnation has not been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, accordingly, we express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report, dated August 24, 2000, on our consideration of the City's internal control over financial reporting and our tests of compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. f)~;. ~J.. ld August 24, 2000 Deloitte Touche Tohmatsu - 12- . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1999 - ... - ... - ... - ... - - Governmental Fund Types Special Debt Capital ASSETS General Revenue Service Proiects Cash and cash equivalents $3,305,637 $ 2,690,539 $ 611,568 $ 5,821 ,655 Receivables: Accounts receivable, net 67,236 Accrued interest receivable 29,618 Due from other governments 166,733 16,252 Due from other funds 64,036 1,710,084 Inventories 8,714 Restricted assets: Cash and cash equivalents 98,515 Investments Property, plant, and equipment (net, where applicable, of accumulated depreciation) Unamortized bond costs, net Amount available in debt service funds Amount to be provided for retirement of generallong-tenn debt Amount to be provided for accrued compensated absences Amount to be provided for capital lease payable Total assets $3,643,635 $4,484,111 $ 611,568 $5,851,273 See notes to financial statements. - - - - - - -. -. - - 13 - . . . . . . . . . Proprietary . Fund Type Account Groups Totals . General General Long- (Memorandum Enterprise Fixed Assets Tenn Debt Qnbll . . $ 2,183,876 $ $ $14,613,275 . 854,629 921,865 ... 34,963 64,581 .. 182,985 . 1,477,070 3,251,190 ... 503 9,217 .. ... 4,064,985 4,163,500 ... ... 1,124,733 1,124,733 ... ... 29,366,103 23,645,263 53,011,366 ... ... 408,441 408,441 ... 611,568 611,568 ... - - 16,447,402 16,447,402 - - 680,994 680,994 - - - 122,312 122,312 - - $39,515,303 $23,645,263 - $17,862,276 $95,613,429 (Continued) - 14 - . . . CITY OF WINTER SPRINGS, FLORIDA . . COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS . SEPTEMBER 30,1999 . . Governmental Fund Types . LIABILITIES, FUND EQUITY Special Debt Capital AND OTHER CREDITS General Revenue Service Proiects . . LIABILITIES: . Accounts payable $ 335,744 $ 44,099 $ $ 66,160 Accrued liabilities 78,960 345 . Due to other funds 300,640 1,230,634 77 . Payable from restricted assets: . Accrued interest Revenue bonds payable . Obligation under utility agreement . Customer deposits 98,515 . Accrued compensated absences . Capital lease payable Obligation under utility agreement, less . portion payable from restricted assets . Revenue bonds payable, less portion . payable from restricted assets . Total liabilities 813,859 1,275,078 66,237 . FUND EQUITY AND OTHER CREDITS: . Investment in general fixed assets ... Contributed capital ... .-. Retained earnings: ... .-. Reserved for renewal and replacement - Reserved for capital improvements .-. Unreserved ... - Fund balances: - - Reserved for debt service 611,568 - Reserved for encumbrances 90,918 9,296 43,690 - - Reserved for inventories 8,714 - Reserved for capital projects 5,741,346 - - Unreserved 2,730,144 3,199,737 - - - Total fund equity and other credits 2,829,776 3,209,033 611,568 5,785,036 - - TOTAL LIABILITIES, FUND EQUITY - AND OTHER CREDITS $3,643,635 $4,484, III $ 611,568 $5,851,273 - See notes to financial statements. - 15 - . . . . . . . Proprietary . Fund Type Account Groups Totals . General General Long- (Memorandum Enterprise Fixed Assets Tenn Debt Only) . . . $ 122,829 $ $ $ 568,832 3,631 82,936 . 1,719,839 3,251,190 . . 713,695 713,695 750,000 750,000 . 605,768 605,768 . 556,212 654,727 . 103,063 680,994 784,057 . 122,312 122,312 . 590,000 590,000 . 22,623,352 17,058,970 39,682,322 . . 27,788,389 17,862,276 47,805,839 . . 23,645,263 23,645,263 . 7,897,656 7,897,656 . . 282,585 282,585 520,378 520,378 ... 3,026,295 3,026,295 ,., . ... 611,568 .... 143,904 ... - 8,714 ... 5,741,346 - ... 5,929,881 - - -- 11,726,914 23,645,263 47,807,590 - -- - -- $39,515,303 $23,645,263 $17,862,276 $ 95,613,429 - -- - -- - (Concluded) -- -- - 16 - - . . . CITY OF WINTER SPRINGS, FLORIDA . . COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN . FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1999 . . Governmental Fund Types Totals . Special Debt Capital (Memorandum General Revenue Service Projects QnM . REVENUES: . Taxes and special assessments $' 3,352,707 $ 2,946,268 $ $ $ 6,298,975 . Licenses, penn its, and fees 1,032,826 730,022 1,762,848 Intergovernmental revenues 2,709,540 208,704 2,918,244 . Charges for services 160,481 754,267 914,748 . Fines and forfeitures 189,717 59,489 249,206 Interest 151,884 92,422 80,465 59,184 383,955 . Miscellaneous 790,524 136,843 927,367 . Total revenues 8,387,679 4,928,015 80,465 59,184 13,455,343 . EXPENDITURES: . Current: . General government 2,516,840 209,441 2,726,281 Public safety 5,231,871 123,324 5,355,195 . Transportation 1,092,223 26,962 1,119,185 . Culture and recreation 1,042,556 1,042,556 Capital outlay 397,025 894,086 501,097 1,792,208 ... Debt service: - .... Principal retirement 390,000 390,000 - Interest and fiscal charges 692,955 692,955 - Payment to escrow agent 652,000 652,000 - - Bond issuance costs 322,802 322,802 - - Total expenditures 10,280,515 1,253,813 2,057,757 501,097 14,093,182 - - EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES (1,892,836) 3,674,202 (1,977,292) (441,913) (637,839) OTHER FINANCING SOURCES (USES): - Operating transfers in 2,023,309 1,095,100 1,065,698 898,602 5,082,709 - Operating transfers out (3,857,119) (944,819) (305,771) (5,107,709) - Bond proceeds 2,597,053 5,402,555 7,999,608 - Payment to escrow agent (2,328,288) (2,328,288) Total other financing sources (uses) 2,023,309 (2,762,019) 389,644 5,995,386 5,646,320 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 130,473 912,183 (1,587,648) 5,553,473 5,008,481 FUND BALANCES AT BEGINNING OF YEAR 2,699,303 2,296,850 2,199,216 231,563 7,426,932 FUND BALANCES AT END OF YEAR $ 2,829,776 $ 3,209,033 $ 611,568 $ 5,785,036 $ 12,435,413 See notes to financial statements. - 17 - . . . CITY OF WINTER SPRINGS, FLORIDA . . COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN . FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES (BUDGETARY BASIS) . YEAR ENDED SEPTEMBER 30,1999 . General Fund . Variance . Favorable . Budget Actual (Unfavorable) REVENUES: . Taxes and special assessments $ 3,402,990 $ 3,352,707 $ (50,283) . Licenses, permits, and fees 649,000 1,032,826 383,826 . Intergovernmental revenues 2,666,013 2,709,540 43,527 . Charges for services 102,500 160,48 I 57,98 I Fines and forfeitures 190,000 189,717 (283) . Interest 193,000 151,884 (41,116) . Miscellaneous 840,000 790,524 (49,476) . Total revenues 8,043,503 8,387,679 344,176 . EXPENDITURES: . Current: .. General government 2,404,974 2,516,840 (1 I 1,866) ... Public safety 5,264,03 I 5,231,871 32,160 . Transportation 1,167,429 1,092,223 75,206 .-. Culture and recreation 995,959 1,042,556 (46,597) ... Capital outlay 558,477 397,025 161,452 .-. ... Debt service: - Principal retirement - - Interest and fiscal charges - - Total expenditures 10,390,870 10,280,5 I 5 110,355 - - EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES (2,347,367) (1,892,836) 454,531 - - OTHER FINANCING SOURCES (USES): - Operating transfers in 2,083,727 2,023,309 (60,418) Operating transfers out Bond proceeds Payment to escrow agent Total other financing sources (uses) 2,083,727 2,023,309 (60,4 I 8) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (263,640) 130,473 394,113 FUND BALANCES AT BEGINNING OF YEAR 2,699,303 2,699,303 FUND BALANCES AT END OF YEAR $ 2,435,663 $ 2,829,776 $ 394,113 See notes to financial statements. (Continued) - 18 - . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30, 1999 Special Revenue Funds Variance Favorable Budget ~ (Unfavorable) REVENUES: Taxes and special assessments Licenses, permits, and fees Intergovernmental revenues Charges for services Fines and forfeitures Interest Miscellaneous $ 2,660,166 $ 2,946,268 $ 286, I 02 505,000 730,022 225,022 200,000 208,704 8,704 1,792,522 1,951,293 158,771 16,500 59,489 42,989 77,030 92,422 15,392 136,843 136,843 5,251,218 6,125,041 873,823 Total revenues EXPENDITURES: Current: General government Public safety Transportation Culture and recreation Capital outlay Debt service: Principal retirement Interest and fiscal charges 1,507,358 ... .. ... ... ... ... ... - - - - 1,434,057 57,000 133,920 - - - - - Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds Payment to escrow agent Total other financing sources (uses) (2,755,270) 3,132,335 2,118,883 1,023,785 (3,779,055) - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR (636,387) 2,296,850 $ 1,660,463 See notes to financial statements. - 19 - 1,406,467 123,324 26,962 894,086 2,450,839 3,674,202 1,095,100 (3,857,119) (2,762,019) 912,183 2,296,850 $ 3,209,033 27,590 (66,324) 106,958 613,272 681,496 1,555,319 71,3 15 (78,064) (6,749) 1,548,570 $ 1,548,570 . . . . . . . . Debt Service Funds Capital Projects Funds . Variance Variance . Favorable Favorable . Budget Actual (Unfavorable) Budget AmI.a.I (Unfavorable) . $ $ $ $ $ $ . . . . 90,393 80,465 (9,928) 110,000 59,184 (50,816) . . 90,393 80,465 (9,928) 110,000 59,184 (50,816) . . . . . 918,483 501,097 417,386 . - 395,000 390,000 5,000 ... ... 689,936 692,955 (3,019) ... - 1,084,936 1,082,955 1,981 918,483 501,097 417,386 - - - - (994,543) (1,002,490) (7,947) (808,483) (441,913) 366,570 - ... - - 994,543 1,065,698 71,155 900,000 898,602 (1,398) - (944,819) (944,819) (305,771 ) (305,771) - - 2,597,053 2,597,053 5,500,000 5,402,555 (97,445) - (2,328,288) (2,328,288) - - 994,543 389,644 (604,899) 6,400,000 5,995,386 (404,614) - - - - -- - (612,846) ( 612,846) 5,591,517 5,553,473 (38,044) 2,199,216 2,199,216 231,563 231,563 $ 2,199,216 $ 1,586,370 $ (612,846) $ 5,823,080 $ 5,785,036 $ (38,044) (Continued) - 20- . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30,1999 Totals (Memorandum Only) Variance Favorable Budget Actual (Unfavorable) $ 6,063,156 $ 6,298,975 $ 235,819 1,154,000 1,762,848 608,848 2,866,013 2,918,244 52,231 1,895,022 2,111,774 216,752 206,500 249,206 42,706 470,423 383,955 (86,468) 840,000 927,367 87,367 13,495,114 14,652,369 1,157,255 REVENUES: Taxes and special assessments Licenses, penn its, and fees Intergovernmental revenues Charges for services Fines and forfeitures Interest Miscellaneous Total revenues ... ... .... - .... - .... - .... - - - - - - - EXPENDITURES: Current: General government Public safety Transportation Culture and recreation Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures 3,839,031 3,923,307 (84,276) 5,321,031 5,355,195 (34,164) 1,30 I ,349 1,119,185 182,164 995,959 1,042,556 (46,597) 2,984,318 1,792,208 1,192,110 395,000 390,000 5,000 689,936 692,955 (3,019) 15,526,624 14,315,406 1,211,218 (2,031,510) 336,963 2,368,4 73 5,002,055 5,082,709 80,654 (3,779,055) (5,107,709) (I ,328,654) 5,500,000 7,999,608 2,499,608 (2,328,288) (2,328,288) 6,723,000 5,646,320 (1,076,680) - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds Payment to escrow agent Total other financing sources (uses) -- - -- EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR 4,691,490 7,426,932 $12,118,422 5,983,283 7,426,932 $13,410,215 1,291,793 -- $1,291,793 See notes to financial statements. (Concluded) - 21 - . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND TYPE YEAR ENDED SEPTEMBER 30,1999 Water & Sewer Utility EYrnt OPERA TING REVENUES - User charges $ 5,652,715 OPERA TING EXPENSES: Salaries and benefits Materials and supplies Depreciation and amortization Other operating expenses 1,128,653 489,264 1,245,835 1,694,083 Total operating expenses 4,557,835 OPERA TING INCOME 1,094,880 .... - .... - - - - NONOPERATING REVENUES (EXPENSES): Interest income Interest expense Connection fees Other 252,455 (1,448,566) 1,088,862 5,660 - - - Total nonoperating revenues (expenses) (101,589) - - INCOME BEFORE OPERATING TRANSFER 993,291 - - OPERA TING TRANSFER IN 25,000 NET INCOME 1,018,291 RETAINED EARNINGS AT BEGINNING OF YEAR 2,810,967 RETAINED EARNINGS AT END OF YEAR $ 3,829,258 See notes to financial statements. - 22- . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS- PROPRIETARY FUND TYPE YEAR ENDED SEPTEMBER 30, 1999 Water & Sewer Utility Fund CASH FLOWS FROM OPERATING ACTIVITIES: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Changes in assets and liabilities: Decrease in accounts receivable Increase in due from other funds Decrease in inventories Decrease in accounts payable Decrease in accrued liabilities Increase in due to other funds Increase in customer deposits Increase in accrued compensated absences Increase in utility agreement obligation $ 1,094,880 1,245,835 50,052 (1,476,791) 33 (126,727) (33,409) 1,492,081 61,319 19,158 357,392 Total adjustments 1,588,943 Net cash provided by operating activities 2,683,823 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES- Operating transfer in 25,000 ~ .. ~ .. - ... - - - - - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Connection fees Interest paid on revenue bonds Principal payments on revenue bonds (621,708) 1,088,862 (I ,454,87 I) (710,000) Net cash used in capital and related financing activities (I ,697,717) CASH FLOWS FROM INVESTING ACTIVITIES: Earnings on cash, cash equivalents, and investments Sales of government securities and commercial paper 289,472 1,486,425 - - Net cash provided by investing activities 1,775,897 - -- NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,787,003 3,461,858 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 6,248,861 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES - . During the year ended September 30, 1999, the City recorded as contributed capital utility system equipment donated by developers totaling $607,032. See notes to financial statements. - 23 - . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 1999 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Winter Springs, Florida (the "City") was established by a special act of the Florida Legislature and incorporated in 1959. The City is located in the central Florida county of Seminole. The legislative branch of the City is composed of a five-member elected Commission, 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. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to units oflocal governments. The following is a summary of the more significant policies: lL Reporting Entity - The City is a stand-alone governmental unit. There are no organizations for which the City is financially accountable or for which their nature and relationship with the City would cause the City's financial statements to be misleading if excluded. ... .. .-. - - - - - b. Fund Accounting - The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which the resources are to be spent and the means by which spending activities are controlled. The purposes of the City's various funds and account groups are as follows: - - - Governmental Funds: - - General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. - Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds - The Debt Service Funds are used to account for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. Capital Projects Funds - Capital Projects Funds are used to account for the portion of the proceeds resulting from the Subordinate Improvement Revenue Bond - Series 1997 and the Improvement Refunding Revenue Bond - Series 1999. These monies are being used for the renovation of City Hall, the planning and development of a Town Center, and various road improvement projects. - 24- . . . . . . . . . . . . . . . . . . . . . . Proprietary Fund: Enterprise Fund - The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the City Commission is that the costs (expenses, including depreciation) of providing services to the general public be financed or recovered primarily through user charges. The City's enterprise fund consists of a water and sewer utility. Account Groups: General Fixed Assets - The General Fixed Assets Account Group is used to account for the fixed assets of the City, except those of the proprietary funds. General Long-Term Debt - The General Long-Term Debt Account Group is used to account for the outstanding principal balances on any general or special obligation bonds, notes, compensated absences, or other long-term debt of the City, except for long-term debt of the proprietary fund. c. Measurement Focus- .. WI' ... .. - - - - - Governmental Fund Types - General, Special Revenue, Debt Service, and Capital Projects Funds are accounted for on a current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. The City considers all collections within one year of year-end to be available, except property taxes, which are not available unless collected within sixty days. Revenues susceptible to accrual include emergency medical service fees and investment earnings. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for unmatured principal and interest on most general long-term debt, which is recognized when due. Proprietary Fund Type - The Enterprise Fund is accounted for on the flow of economic resource measurement focus and uses the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when liabilities are incurred. The City has elected not to apply Financial Accounting Standards Board Statements and Interpretations issued after November 30, ] 989, as permitted by Statement No. 20 of the Governmental Accounting Standards Board, Accounting and Financial Reporting/or Proprietary Funds and Other Governmental Entities that Use Proprietary Fund Accounts. - - - - - - Account Groups - The General Long-Term Debt and General Fixed Assets Account Groups are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Long-term debt which is not intended to be financed through the Proprietary Fund is accounted for in the General Long-Term Debt Account Group. Fixed assets which are not used in Proprietary Fund operations are accounted for in the General Fixed Assets Account Group. d. Cash and Cash Equivalents - The City considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. e. Investments - All investments are presented at fair value. - 25 - . . . . . . . . . . . . . . . . . . . . . . . . . . The City Charter and bond resolutions authorize the City to invest in direct obligations of or obligations guaranteed by the Department of Treasury of the United States of America, obligations of specific federal agencies of the Unites States of America, bonds, notes, or other evidence of indebtedness issued by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, secured repurchase agreements, bankers' acceptance, money market, commercial paper, certificates of deposit, and the Local Government Surplus Funds Trust Fund. All investments must be insured, registered, or held by the City or a trustee in the City's name. f. Receivables - (1) Property Taxes - Under Florida law, the assessment of all properties and the collection of all county, municipal, and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessments are also designed to assure a consistent property valuation method statewide. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The millage rate assessed by the City for the fiscal year ended September 30, 1999 was 3.5495 mills. Property taxes are billed and collected within the same fiscal period, and are reflected on the modified accrual basis. Ad valorem taxes on property values have a lien assessment date of - January 1, with the millage established during September. The fiscal year for which taxes are levied begins October 1. Taxes are billed (levied) in November, with a maximum discount available through November 30, and become delinquent April 1. During May of each year, the certificates for unpaid taxes are sold by the County and the proceeds remitted to the City. The City does not recognize property taxes receivable since related revenues are appropriated in the subsequent fiscal year and amounts are not considered available for current appropriations. (2) Accounts Receivable - The Water and Sewer Utility Fund operating revenues are recognized on the basis of cycle billings rendered monthly. Revenues for services delivered during the last month of the applicable reporting period that have not been billed are accrued. .-. ... - - - - - - - - - (3) Allowance for Doubtful Accounts - The City provides an allowance for water and sewer and emergency medical transport accounts receivable that may become uncollectible. At September 30, 1999, this allowance was $369,074 for water and sewer charges in the proprietary fund and $83,925 for emergency medical transport fees in the special revenue funds. - g. Inventories - Inventories are stated at cost, which is determined on the first-in, first-out method. Inventories in the General and Enterprise Funds consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are used (consumption method). Reported inventories within the governmental funds are offset by a fund balance reserve, which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. - - - - - -- It. Property, Plant, and Equipment - (1) Property, plant, and equipment purchased in the governmental fund types are recorded as capital outlay expenditures at the time of purchase. Such assets are capitalized at cost or estimated cost if purchased or constructed. Donated property, plant and equipment are - 26- . . . . . . . . . . . . . . . . . . . . . . . . . . . ... - . ... .... ... - - - - - - - - - - - - - - - - - - -- recorded at estimated fair market value at the date of donation. Assets in the general fixed assets account group are not depreciated and do not have interest capitalized during construction. Public domain ("infrastructure"), such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, that are immovable and of value only to the government are not capitalized. (2) Property, plant, and equipment of the Proprietary Fund Type are recorded at cost. Donated property, plant, and equipment are capitalized at their estimated fair market value at the time received. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of depreciable assets. The estimated useful lives of the various classes of depreciable assets are as follows: Asset Years Utility System Equipment Vehicles 30 years 5 years 3 years i. Unamortized Bond Costs - Costs associated with the issuance of revenue bonds are amortized over the life of the bonds using the straight-line method of accounting, which approximates the interest method. j. Accrued Compensated Absences - The City records compensated absences in the Governmental Fund Types as expenditures of the amount that would normally be liquidated with expendable available financial resources. The remainder of the liability is reported in the General Long-Term Debt Account Group. The Proprietary Fund Type accrues compensated absences in the period they are earned. k. Contributed Capital- Contributed capital, accounted for in the Proprietary Fund, represents the estimated equipment costs incurred by customers and developers for connection to the City's utility system. Depreciation expense on contributed fixed assets is reflected in the statement of revenues, expenses, and changes in retained earnings. I. Encumbrances - Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded to receive that portion ofthe applicable appropriation, is utilized in all governmental funds. Encumbrances outstanding at year- end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. m. Budget and Budgetary Accounting - Budgets are legally adopted for all of the City's Funds and are prepared in accordance with generally accepted accounting principles, with the exception of the Solid Waste Special Revenue Fund (see (8) below). The City follows the procedures set forth below in establishing the budgetary data reflected in the financial statements: (1) On or before July 1st of each year, the City Man'ager submits a Proposed Budget to the City Commission for the fiscal year beginning the following October 1st. The Budget includes proposed revenues and expenditures, and a description of capital activities for the ensuing fiscal year. (2) The City Commission then holds informal workshops. Each item in the budget is thoroughly discussed, and the public is invited to participate. - 27- . . . . . . . . . . . . . . . . . . . . . (3) On or before September 30th of each year, the public hearings are completed and the Commission adopts the final budget and establishes the ad valorem tax millage. (4) The budget may be formally amended by City Commission at any time. (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. (6) Appropriations lapse at the end of the fiscal year. (7) Budgeted appropriations may not be exceeded at the fund level. However, actual expenditures exceeded budgeted appropriations in the Special Law Enforcement Trust Fund,. the Solid Waste Fund, and the Medical Transport Fund. (8) Actual amounts on the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Funds are presented on a budgetary basi~ which differs from presentation in accordance with generally accepted accounting principles (GAAP) as follows: Special Revenue Fund Type Revenues Expenditures GAAP basis Pass-through costs collected and remitted as agent in Solid Waste Fund $ 4,928,0 15 $1,253,813 ... - - - - - Non-GAAP budgetary basis I,197,026 $6,125,041 1,197,026 $ 2,450,839 Debt Service Fund Type - GAAP basis Payment to escrow agent in 1989 Debt Service Fund Bond issuance costs paid from 1999 Debt Service Fund Bond issuance costs paid from 1993 Debt Service Fund $2,057,757 (652,000) (297,398) (25,404) $ 1,082,955 - - - - - Non-GAAP budgetary basis - n. Total Columns on Combined Statements - Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS The City's demand deposits and certificates of deposits at September 30, 1999 are covered by Federal Depository Insurance or the State of Florida collateral pool. The State of Florida collateral pool is a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. - 28 - . . . . . . . . . . . . . . . . . . . Investments are presented at fair value, and are categorized in the following table to give an indication of the level of risk assumed by the City at September 30, 1999. Category 1 includes investments that are insured or registered for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department in the City's name. Following are the City's investments at September 30, 1999: Risk Category 1 Risk Category 2 !Qtal $ 4,048,600 1,124,733 $ 5, 173,333 Overnight repurchase agreements u.S. Government Treasury Bills $ $ 4,048,600 1,124,733 $5,173,333 Total $ Cash, cash equivalents, and investments are presented on the combined balance sheet as follows: Unrestricted Cash and cash equivalents Restricted Cash and cash equivalents Investments $14,613,275 - .... ... .... - - - - - Total Total investments categorized above Total deposits 4,163,500 1,124,733 19,901,508 5,173,333 $14,728,175 - 3. INTERFUND BALANCES - - Individual fund interfund receivable and payable balances at September 30, ] 999 are as follows: - General Fund Due from Due to Other Funds Other Funds $ 64,036 $ 300,640 19,981 18,464 1,489,815 1,197,026 73,977 2,148 126,3 1 ] ] 2,996 1,710,084 1,230,634 77 ],477,070 ],719,839 $3,25],]90 $3,25],]90 Special Revenue Funds Streetlighting Fund Solid Waste Fund Stormwater Utility Fund Public Service Tax Fund Medical Transport Fund Total Special Revenue Funds Capital Proiects Funds 1997 Construction Fund Enterprise Funds - 29- . . . . . . . . . . . . . . . . . . . . . . . . . . ... 'W' ... 'W' ... ... ... - - - - - - - - - - - - - - - - - - - - - - 4. PROPERTY, PLANT, AND EQUIPMENT Following is a summary of Proprietary Fund Type property, plant, and equipment at September 30, 1999: Utility system Office building Office furniture and equipment Vehicles Land Construction in progress Total Less accumulated depreciation $ 33,142,954 637,546 811,992 537,070 4,409,062 27,000 39,565,624 (10,199,521) $ 29,366, I 03 Following is a summary of changes in the General Fixed Assets Account Group for the year ended September30, 1999: Land Buildings Furniture and equipment Vehicles Stonnwater system Park and recreational facilities Construction in progress Balances October 1, ~ Additions $ 5,796,396 $ 5,173,138 143,849 1,929,325 487,107 1,749,864 200,763 5,640,702 2,543,783 214,394 289,533 72,579 $23,122,741 $1,118,692 - 30- Deletions $ 176,300 61,627 358,243 $596,170 Balances September 30, 19.9.9 $ 5,796,396 5,316,987 2,240,132 1,889,000 5,640,702 2,758,177 3,869 $ 23,645,263 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. LONG- TERM DEBT a. Changes in General Long-Term Debt - Following is a summary of changes in general long-term debt for the year ended September 30, 1999: Balances Balances October 1, September 30. 19.9.8 Additions Deletions ~ Improvement Refunding Revenue Bonds: Series 1989 $ 2,875,000 $ $ 2,875,000 $ Series 1993 8,875,000 285,000 8,590,000 Series 1999 7,998,970 7,998,970 Improvement Revenue Bonds, Series 1997 575,000 105,000 470,000 Accrued compensated absences 343,320 337,674 680,994 Capital lease payable 134,568 12,256 122,312 Total $ 12,668,320 $8,471,212 $ 3,277,256 $ 17,862,276 b. Improvement Refunding Revenue Bonds and Improvement Revenue Bonds - The major provisions of the resolutions authorizing Improvement Refunding Revenue Bonds and Improvement Revenue Bonds are as follows: (1) Establishment and maintenance of various funds. The Debt Service Fund records all the debt service requirements of the issue, and includes the sinking fund and reserve accounts. (2) Restriction on the use of cash in order of priority. (a) Payment of current debt service requirements. (b) Payment of reserve requirements up to the maximum of $888, 121 for the Series 1993 bonds. .-. ... .-. ... .-. ... - - - - - - - - - - (c) Any remaining revenue can be used for any lawful purpose. (3) Early redemption. The bond resolutions provide for the City's optional early redemption of outstanding bonds at call rates varying from 100% to 102% of the instrument's face value plus accrued interes4 depending on the call date. The redemption period began October I, 1998 for the Series 1997 bonds, and will begin October 1, 2004 for the Series 1993 bonds and October 1, 2009 for the Series 1999 bonds. - (4) Investment restrictions. - - - Debt Service Fund and Excise Tax Fund monies may be invested in authorized investment securities which mature not later than the dates on which the monies on deposit will be needed for the purpose of such fund. Reserve Account monies may be invested in securities maturing not later than five years from the date of their deposit into the Reserve Account. - - - ....... - 31 - . . . . . . . . . . . . . . . . . . . . . - ., - - - - (5) Pledge of revenues. The bonds and related interest are payable solely from and collateralized by a lien on the Public Service Tax that the City is entitled to levy on certain utility sales and Franchise Fees levied by the City for a 3D-year electric franchise granted by the City in 1984. The Improvement Refunding and Improvement Revenue Bonds consisted of the following at September 30, 1999: Principal Balance Interest Outstanding al Rates and Original September 30, ~ Matw:in: AmJwnl lli2 Improvement Refunding Revenue Bonds - 3.900/0-5.5% 10/1/99 - Series 1993 (4/1 & 10/1) 10/1/18 $ 9,365,000 $ 8,590,000 Subordinate Improvement Revenue Bonds - 4.89% 10/1/99 - Series 1997 (4/1 & 10/1) 10/1 /02 $ 575,000 $ 470,000 Improvement Refunding Revenue Bonds - 3.250/0-5.25% 10/1/10 - Series 1999 (4/1 & 10/1) 10/1/29 $ 7,998,970 $ 7,998,970 c. Water and Sewer Refunding Revenue Bonds and Water and Sewer Revenue Bonds - The major provisions of the resolutions authorizing the Water and Sewer Refunding Revenue Bonds and Water and Sewer Revenue Bonds are as follows: (1) Establishment and maintenance of various funds. - (a) The Revenue Fund records all gross revenues derived from operation of the utility. - - (b) The Debt Service Fund (including principal, interest, and redemption accounts) records all monies to meet current debt service and reserve requirements. - - (c) The Utility Renewal and Replacement Fund records monies for paying the cost of extensions, enlargements, additions, or replacement of capital assets of the utility. (2) Restrictions on the use of cash from operating revenue in order of priority. (a) Transfer of developer agreement payments into a Developer Agreement Payments Account. (b) Payment of current operating and maintenance expenses. (c) Payment of current debt service and reserve requirements. (d) Payments to Renewal and Replacement Funds at one-twelfth of 5% of gross revenues received in the preceding fiscal year, until the amount on deposit equals or exceeds: · Five percent of gross revenues of the preceding fiscal year attributable to the west utility plant. - 32 - . . . . . . . . . . . . . . . . . . . . (3) Early redemption. Early redemption is provided for at a call rate varying from 100% to 102% of the face amount of the bonds. (4) Investment restrictions. Water and Sewer Refunding Revenue Bonds, Series 1991: (a) The Revenue Fund and the Debt Service Fund may invest in investment securities, which mature not later than the dates on which the monies on deposit therein will be needed for the purpose of such fund. (b) The Renewal and Replacement Fund may invest in investment securities with no more than five years maturity. (c) The Reserve Account of the Debt Service Fund may invest in investment securities, which mature no later than the last maturity date of the bonds. Water and Sewer Refunding Revenue Bonds, Series 1992 and Water and Sewer Subordinate Revenue Bonds, Series 1997: Monies in any fund or account may be invested in investment securities, which mature no later than dates on which the monies will be needed for the purpose of such fund or account. ~ .. ... - - - - - .- (5) Pledge of revenues. The bonds are payable solely from and collateralized by the net revenues of the system. Net revenues include all rates and charges received from customers, connection reservation fees, and interest or investment income, less costs for operation and maintenance of the systems. In addition, for the Water and Sewer Revenue Bonds, new revenues include amounts received under a certain I O-year developer agreement (see Note 9). - - 33 - . . . . . . . . . . . . . . . . . . . . . . . . . d ... ... - ... - - - ... ... - - - - - - - - - -- - The Water and Sewer bonds consisted of the following at September 30, 1999: Principal Balance Interest Outstanding at Rates and Original September 30, Description Dates Maturity Am2!mt 1m Water and Sewer Refunding 5.75o/<r6.75% Revenue Bonds - Series 1991 (4/1 & 10/1) 10/1/98-10/1/21 $ 6,915,000 $ 6,180,000 Less original issue discOlUlt - net of amortization (131,226) 6,915,000 6,048,774 Water and Sewcr Refunding 4.55o/<r6.125% Revenue Bonds - Series 1992 (4/1 & 10/1) 10/ I /98-4/1120 16,015,000 14,665,000 Less original issue discount - net of amorti711lion (130,422) 16,015,000 14,534,578 Subordinate Water and Sewer 5.18% Revenue Bonds - Series 1997 (4/1 & 10/1) 10/1198-1011107 3,025,000 2,790,000 Total $ 25,955,000 23,373,352 Less current portion (750,000) Long-term portion $ 22,623,352 Defeased Debt - Defeased bonds, for which investments are held in escrow for payment of principal and interest and for which the investments and liability have been removed from the City's balance sheet, were as folJows at September 30, 1999: I Original Issue Date Principal Balance Amount Outstanding at Originally September 30. Iruwl. 1S.S.ll $ 4,980,000 $ 2,875,000 $ 5,035,000 $ 115,000 12,300,000 11,465,000 $ 17,335,000 $ 11,580,000 Description Generallong-tenn debt: May I, 1989 Improvement Refunding Revenue Bonds - Series 1989 Proprietary Fund: September I, 1984 Water and Sewer Revenue Bonds - Series 1984 April I, 1990 Water and Sewer Revenue Bonds - Series 1990 - 34- . . . . e. Obligation Under Utility Agreement- In connection with the City's acquisition of the assets of . Seminole Utility Company during fiscal year ended September 30, 1990, the City entered into an . agreement with the seller whereby the City is obligated to pay the seller for future connections to the east utility plant, up to a maximum of $4,967,020 over a period of 15 years. The City has paid! . $1,307,054 for these connections through September 30, 1999. . At September 30, 1999, outstanding balances were as follows: . . Estimated accrual for remainder of obligation $1,195,768 Less current portion (605,768) . . Long-term portion at September 30, 1999 $ 590,000 . f. Annual Requirements to Maturity - The annual debt service requirements to amortize all bonded. . debt of the City as of September 30, 1999 are as follows: . . General Long-Term Debt Enterprise Fund Improvement Improvement Improvement "'ater Bnd Sewer Water and Sewer Water and Sewer . Rdunding Rdunding Subordinate ReCunding Refunding Subordinate . Fiscal Year Revenue Bonds. Revenue Bonds, Revenue Bonds. Revenue Bonds. Rnenue Bonds, Revenue Bonds, 1f_A_ Ending ~ri.s 1999 S.ri.. 1993 ~ri.s 1997 ~ri.. 1991 ~ri.s 1992 ~ri.. 1997 DobI s..w.... . Sfootember 30 friIWIllII .In.W:nl friIWIllII .In.W:nl friIWIllII .In.W:nl frin.tWI .In.W:nl fI:iJWlIal .In.W:nl friIWIllII 1nkm1 ReouirnnftlBl' 2000 S 165.000 S 201,030 S 45.000 447,872 S110,OOO S20.294 S 125.000 399,648 S 375.000 865.971 S 250.000 S131,313 $ 3,136,128- . 2001 200.000 194.030 45.000 445,803 115.000 14.792 135.000 391.412 395.000 845,753 265,000 117.586 3.164,376- 2002 220.000 185,230 45.000 443.733 120.000 9.047 140.000 382,733 420.000 823,946 280.000 103.082 3,172,m . 2003 240.000 175.390 50.000 441,422 125.000 3,056 150.000 373.282 440.000 800.727 290,000 88.060 3.176.937 2004 390.000 158.815 55.000 438,745 155.000 363,363 465.000 776.059 305,000 72.261 3,179,24> 2005 415,000 140.763 55,000 435,940 170.000 352.312 490.000 749.429 325.000 55.426 3,188.870 . 2006 440.000 121.183 60.000 432.962 180.000 340,388 520.000 720.502 340.000 37.814 3.192,849 2007 470.000 99,798 60,000 429,813 190.000 328.037 545.000 689,349 355.000 19.425 3.IB6,~ . 2008 270,000 87.378 290.000 420.625 200.000 315.038 580.000 655.871 380.000 3.198,912 2009 55.000 84,793 545.000 398.706 220.000 300,737 615,000 619.714 2,838;9SO . 2010 75.000 81.193 575.000 369.306 225.000 286,113 650.000 581.13 I 2,1142,70 2011 95.000 76,538 605.000 338,331 245,000 270,187 690,000 540,261 2;860,3 Fr. 2012 115,000 70.673 640.000 305.650 255,000 253,613 735.000 496.799 2.871,735 ... 2013 135.000 63.788 670,000 271.263 280.000 235.412 780.000 450.494 2,8115,957 - 2014 150,000 55.913 705.000 234.288 295,000 216.238 825,000 401.341 2,Illl2.7'IlO - 2015 175,000 46.725 745,000 194.412 310,000 196.087 875.000 349.278 2,891,502 - 2016 195,000 36.488 785.000 152.337 340.000 173,138 930.000 294,000 2;905,9173' - 2017 210.000 25,463 830.000 110,000 360.000 148,837 990.000 235.200 2,909.500' - 2018 235.000 13.125 870,000 67.500 385,000 122.850 1.050.000 172.725 2,916,200- - 2019 250.000 857.119 915.000 22.875 410.000 95.175 1.115.000 106.422 3,771,591 - 2020 417.880 881.204 440.000 65.475 1.180,000 72.275 3.056.8'3'4'. 2021 393,797 903.236 470,000 33.750 I.BOO. 7lIiJo - 2022 371.765 924,107 500.000 1,795.872' - 2023 350.893 943,870 t,294,76J - 2024 331,130 926,587 '.257,7'1'7: - 2025 312.413 979.544 1,29I,957i .- 2026 295.456 996,323 1,291,77.9> - 2027 278,677 1,011,483 1.290,160' .- 2028 263,517 1.026.5 I 5 l,29O,O~ - 2029 248.485 1.040,043 (',288.52& 2030 234,957 234,957 .- - ~ S 12.408.347 ~ ~ ~ ~ ~ S5.643.825 S 14.665,000 S 11.247.247 ~ ~ $TI.067,I28- - - - - - 35 - . . . . . . . . . . . . . . . . . . . . . . . . ... ... ... .... ... .... - .... - .... - .... - - - - - - - - - - - - 6. CONTRIBUTED CAPITAL Contributed capital recorded in the Enterprise Fund at September 30, 1999 includes Contributions in Aid of Construction (CIAC) and utility system equipment donated by customers and developers. CIAC represents advances made to the west utility plant by its customers and developers prior to its acquisition by the City on October 6, 1984. The City records as contributed capital equipment donated by developers upon physical connection to the water and sewer system. Changes to contributed capital during the year ended September 30, 1999 were as follows: Balance at September 30, 1998 Equipment donated by developers for Water and Sewer connections $ 7,290,624 607,032 Balance at September 30, 1999 $ 7,897,656 7. PENSION PLANS Effective October 1, 1997, the City adopted a defined benefit plan and amended and restated its Money Purchase Pension Plan and Trust, integrating the two plans for purposes of providing minimum projected retirement benefits (referred to as a "floor-offset"). Under a floor-offset, the projected monthly benefit being provided to the participant under the Money Purchase Pension Plan and Trust is compared to the anticipated projected monthly benefit using the defined benefit fonnula's minimum benefit, or 2% per year of service up to a maximum of 30 years, subject to certain dollar limitations depending on age at time of retirement. If there are insufficient funds in the Money Purchase Pension Plan and Trust to provide the minimum benefit, then the defined benefit plan will provide the difference between the minimum benefit and the projected monthly benefit provided by the Money Purchase Pension Plan and Trust. Following are descriptions of the City's Money Purchase Pension Plan and Trust and Defined Benefit Plan. a. Employee 401(a) Pension Plan- Plan Description: The City maintains a single employer, defined contribution plan (Money Purchase Pension Plan and Trust), which was adopted in August 1993, and amended and restated on October 1, 1997. This is a tax-qualified plan pursuant to Section 401 (a) of the Internal Revenue Code and is administered by an outside party acting as agent for the City. Benefits are established by the Board of Trustees of the Money Purchase Pension Plan and Trust, and may be amended by resolution of the City Commission. Prior to the plan amendment, employees were eligible to participate in the plan after one full year of service provided they worked at least 1,000 hours within the 12-month period. As a result of the plan amendment, employees hired on or after June 1, 1997 are eligible to participate in the plan on the first day of the month immediately following the date six months after commencement of employment. Employees hired prior to June I, 1997 are eligible to participate in the plan on the earliest of: (1) the first day of the plan year following satisfaction of the one year of service requirement, or (2) the first day of the sixth month following satisfaction of the one year of service requirement. After three continuous years of employment with the City, the amount credited to the contribution account of an employee shall vest according to the completed number of employment years preceding the date of termination. After three years of continuous employment, a member is 20% - 36- . . . . . . . . . . . . . . . . . . . . . . . . vested, increasing by 20% each year thereafter to a maximum of 100%. Prior to the plan amendment, members were 40% vested after four continuous years, increasing by 10% for every year thereafter to a maximum of 100%. The plan permits withdrawals for retirement, termination, and disability but does not allow participants to borrow against their accounts. Funding Policy: The City is obligated by the plan document to make a contribution equal to at least 4% of the annual compensation of each member of the plan. Additionally, it is the policy of the City to fund pension costs in installments equally divided among the employee pay periods. Employees contributed 2% of their gross pay to the plan. For the year ended September 30, 1999, the City's contribution was $192,140 and employee contributions were $107,602. b. Defined Benefit Plan - Plan Description: Effective October 1, 1997, employees of the City participate in a defined benefit, single-employer retirement plan (the "Defined Benefit Plan"), formed by agreement between the City and the Board of Trustees of the City of Winter Springs ("Board of Trustees"). All City employees are eligible to participate in the plan on the first day of the month immediately following the date six months after commencement of employment. Employees who have reached the age of 65, or have reached the age of 55 and have completed at least 1 0 years of service, are entitled to a retirement benefit payable monthly for life, equal to 2% of their average compensation multiplied by their years of service at age 65 up to a maximum of 30 years, subject to certain dollar limitations depending on age at time of retirement. Average compensation is the average of the three highest consecutive paid compensation periods, which is the 12-month period ending on the last day of the plan year. Employees who have at least 25 years of credited service may also elect to retire prior to reaching age 55 and receive reduced retirement benefits. ... ... ... ... ... - ... - - - ... - - - - - - - Benefits are established by the Board of Trustees of the Defined Benefit Plan, and may be amended by resolution of the City Commission. The Defined Benefit Plan is administered by an outside third party acting as agent for the City. Participants are credited with units of benefit credit for hours of service worked in a plan year. Benefits fully vest upon reaching seven years of service (including past service prior to the adoption of the Defined Benefit Plan), upon reaching normal retirement age of 65, or upon separation of service resulting from death, disability, or eligibility for an early retirement pension. Available information showing the Defined Benefit Plan's progress in accumulating sufficient assets to pay benefits when due is presented in the Defined Benefit Plan's financial statements. - Funding Policy: The City is obligated to contribute to the Defined Benefit Plan in accordance with actuarially determined contributions; there is no requirement for employees to contribute to the Defined Benefit Plan. The City's actual contributions to the Defined Benefit Plan for the year ended September 30, 1999 were approximately $298,000, which was in accordance with the required contribution for the fiscal year as determined by the October 1, 1998 actuarial valuation; no pension asset or liability exists at September 30, 1999. Plan forfeitures are used to reduce the City's contributions for future plan years. - - - - - - - - - - 37 - . . . . . . . . . . . . . . . . . . . . . . . . The annual required contribution for fiscal 1999 was determined as part of the October 1,1998 actuarial valuation using the entry age actuarial cost method with frozen initial liability for past service benefits earned prior to the adoption of the Defined Benefit Plan. The actuarial assumptions included (a) 8% investment rate of return, (b) projected salary increases of3% per year due to inflation, and (c) no benefit increases after retirement. REQUIRED SUPPLEMENTAL INFORMATION Schedule of Fundin!!: Pro~ress Valuation Date October 1, 1998 Actuarial value of plan assets Actuarial accrued liability Unfunded actuarial liability Actuarial value of assets as a percentage of the actuarial accrued liability Annual covered payroll Ratio of the unfunded actuarial liability to annual covered payroll $ 354,453 $1,772,673 $1,418,220 20.0 % $4,936,762 28.7% The unfunded actuarial liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at September 30, 1999 is 38 years. 8. 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 Public Employees Benefits Service Corporation (PEBSCO) 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. Effective December 1, 1998, all assets in the deferred compensation plan were transferred to a separate trust in accordance with section 1448 of the Small Business Jobs Protection Act of 1996. As a result, such amounts are not presented on the balance sheet at September 30, 1999. .... - .... - .... ... .... - .... 9. RISK MANAGEMENT - The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City purchases commercial insurance through the Florida League of Cities. There have been no significant reductions in insurance coverage during the current year. - - - - - - - 10. COMMITMENTS AND CONTINGENCIES - Various suits and claims, arising in the ordinary course of the City's operations, are pending against the City. The ultimate effect of such litigation cannot be ascertained at this time. In the opinion of City management, liabilities that may arise from such action would not result in losses that would materially affect the financial position of the City or the results of its operations. - - - - - - * * * * * * - - - - 38 - . . . . . . . . . . . . . . . . . . . . . . COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES .-.. .... .-.. .... - - - - - - -. - -. - -. - - 39- . . . . . . . . . . . . . . . . . . . . . SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues from specific taxes or other earmarked revenue sources, which are legally restricted to expenditures for particular purposes. The City has the following sixteen 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 Trust Fund - This fund was established to receive revenues derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes, exclusive of salaries and vehicles. Such purposes may include drug education programs such as DARE. Transportation Improvement Fund - Revenues in this fund are derived from Local Option 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 Fund - This fund was established to record funds received from new developers for the acquisition of land for recreational purposes in lieu of land donated by these developers for recreational purposes. ... ., ... ... - - - - - - - Streetlighting Fund - This fund was established to record proceeds of special streetlighting maintenance districts made up of various subdivisions of Country Club Village. Proceeds are used to pay for lighting and administrative costs. Solid Waste Fund - This fund is used to account for proceeds from billed solid waste and recycling performed by contract vendors. Proceeds are used to pay monthly vendor charges for providing solid waste and recycling services. - Interim Services Fee Fund - This fund receives revenues charged to builders of new developments to cover costs associated with Public Safety, Public Works, and Recreation provided to those properties prior to the property's inclusion on the tax roll. - - Stormwater Utility Fund - This fund was established due to a comprehensive development plan to charge for the establishment and maintenance of storm water utility systems. Proceeds are used to pay for the maintenance of the City's storm water system. - - - - - Public Service Tax Fund - The Public Service Tax fund is used to account for collections of utility taxes charged on electric, water, phone, and gas services. Proceeds are used to pay annual debt service and monies not required to pay debt service are transferred to the General Fund. Excise Tax Fund - This fund is a pass-through fund that receives electric franchise fees submitted to the City in conjunction with the City's electric franchise agreements. Proceeds are transferred to the Electric Franchise Fee Fund. Electric Franchise Fee Fund - This fund is used to account for proceeds of the excise tax fund. These proceeds are used to pay annual debt service. Any excess monies not used to pay debt service are transferred to the General Fund. - 40- . . . . . . . . . . . . . . . . . . . . SPECIAL REVENUE FUNDS Transportation Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of future road construction as a result of growth. Police Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain 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 level of fire service due to future growth. Medical Transport Fund - This fund is used to receive revenues generated from fees charged for paramedic services. The proceeds from this fund are used to pay for the incremental costs related to providing these services. TLBD Improvement Fund - This fund is used to account for collected special assessments related to the Tuskawilla Lighting and Beautification District. ... ... ... ... ... - - - - - - - - - - - - 41 - . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SPECIAL REVENUE FUNDS - COMBINING BALANCE SHEET SEPTEMBER 30, 1999 ... ... ... ... - - - - - Police Special Law Transportation Recreation Education Enforcement Improvement Acquisition Streetlighting ASSETS Fund Trust Fund Fund Fund Fund Cash and cash equivalents $13,990 $ 3,953 $ 97,320 $27,101 $ - Accounts receivable, net Due from other governments 16,252 Due from other funds 19,981 TOTAL $13,990 $ 3,953 $113,572 $27,101 $19,981 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 100 $ - $ 2,665 $ - $ - Accrued liabilities Due to other funds 18,464 Total liabilities 100 2,665 18,464 FUND EQUI1Y: Fund balances: Reserved for encumbrances Unreserved 13,890 3,953 110,907 27,101 1,517 Total fund equity 13,890 3,953 110,907 27,101 1,517 TOTAL $13,990 $ 3,953 $113,572 $27,101 $19,981 - - - - -- - 42 - . . . . . . . . . Interim Stormwater Public Electric Transportation Solid Waste Services Utility Service Excise Franchise Impact . Fund Fee Fund Fund Tax Fund Tax Fund Fee Fund Fee Fund . $ $ - $145,543 $ 2,165 $ $14,786 $1,645,705 . . 1,489,8] 5 73,977 126,311 . . $],489,815 $ - $219,520 $128,476 $ $14,786 $1,645,705 . . . . $ $ - $ 33,363 $ $ $ - $ 6,738 .-. 345 ., 1,197,026 2,148 .-. .... .-. 1,197,026 35,856 6,738 .... - - - - 9,190 - - 292,789 174,474 ]28,476 ]4,786 1,638,967 - 292,789 183,664 128,476 14,786 1,638,967 - $1,489,8]5 $ - $219,520 $128,476 $ $ ]4,786 $1,645,705 (Continued) - 43 - . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SPECIAL REVENUE FUNDS - COMBINING BALANCE SHEET SEPTEMBER 30,1998 ..... - - - - - - - Police Fire Medical TLBD Impact Impact Transport Improvement ASSETS Fee Fund Fee Fund Fund Fund Total Cash and cash equivalents $148,790 $264, I7I $ I73,226 $153,789 $2,690,539 Accounts receivable, net 67,236 67,236 Due from other governments I6,252 Due from other funds 1,710,084 TOTAL $148,790 $264,17I $ 240,462 $153,789 $4,484, III LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ $ $ 1,233 $ $ 44,099 Accrued liabilities 345 Due to other funds I2,996 1,230,634 Total liabilities I4,229 1,275,078 FUND EQUIlY: Fund balances: Reserved for encumbrances 106 9,296 Unreserved 148,790 264,171 226,127 I53,789 3,199,737 Total fund equity I48,790 264,17I 226,233 I53,789 3,209,033 TOTAL $148,790 $264,171 $ 240,462 $153,789 $4,484,111 - - - - - - - - - (Concluded) - 44 - . . . . CITY OF WINTER SPRINGS, FLORIDA . . SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES, . EXPENDITURES, AND CHANGES IN FUND BALANCES . YEAR ENDED SEPTEMBER 30,1999 . . Police Special Law Transportation Recreation Education Enforcement Improvement Acquisition Streetlighting . EYn!t Trust Fund EYn!t EYn!t Fund . REVENUES: . Taxes and special assessments $ $ $ $ - $ - Licenses, permits, and fees . Intergovernmental revenues 208,704 . Charges for services 7,028 Fines and forfeitures 21,898 37,59I . Interest 35 462 487 564 7 Miscellaneous 2,275 . Total revenues . 21,933 40,328 209,19I 564 7,035 . EXPENDITURES: . Current: General government 6,187 . Public safety 10,342 Transportation I7,279 . Capital outlay 45,673 136,994 . Total ex-penditures 10,342 45,673 I 54,273 6,187 . . EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 11,591 (5,345) 54,9I8 564 848 ..... WI' OTHER FINANCING SOURCES (USES): ..... - Operating transfers in - Operating transfers out - ..... Total other financing sources (uses) - ..... - EXCESS (DEFICIENCY) OF REVENUES - AND OTHER FINANCING SOURCES - - OVER (UNDER) EXPENDITURES AND - OTHER USES 11,59I (5,345) 54,918 564 848 - - FUND BALANCES AT BEGINNING - OF YEAR 2,299 9,298 55,989 26,537 669 - - - FUND BALANCES AT END OF YEAR $13,890 $ 3,953 $110,907 $27,101 $1,517 - - - 45 - . . . . . . . . . . Interim Storrnwater Public Electric Transportation Solid Waste Services Utility Service Excise Franchise Impact . Fund Fee Fund EYn!t Tax Fund Tax Fund Fee Fund Fee Fund . . $ $ $ $ 1,732,790 $ 1,060,100 $ $ 26,291 493,269 . . 226,559 333,055 . 108 1,457 4,976 2,630 69,104 . . 226,559 26,399 334,512 1,737,766 1,060, I 00 2,630 562,373 . . 197,637 5,617 - WI' 9,683 ..... 41,630 471,378 - - - 239,267 5,617 481,061 - - - - 226,559 26,399 95,245 1,737,766 1,060,100 (2,987) 81,312 - - - 35,000 1,060, I 00 (98,400) (29,424) (1,626,592 ) (1,060,100) (I ,042,603) - (98,400) (29,424) 35,000 (1,626,592) (1,060,100) 17,497 - 128,159 (3,025) 130,245 111,174 14,510 81,312 164,630 3,025 53,4I9 17,302 276 1,557,655 $292,789 $ $183,664 $ 128,476 $ $ 14,786 $1,638,967 (Continued) - 46 - . . . . CITY OF WINTER SPRINGS, FLORIDA . . SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES, . EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,1999 . . Police Fire Medical TLBD . Impact Impact Transport Improvement . Fee Fund Fee Fund EYn!t .E.!!.m!. !Q1ID . REVENUES: Taxes and special assessments $ $ $ $153,378 $ 2,946,268 . Licenses, permits, and fees 74,632 135,830 730,022 . Intergovernmental revenues 208,704 Charges for services 187,625 754,267 . Fines and forfeitures 59,489 . Interest 2,138 3,748 6,295 411 92,422 Miscellaneous 134,568 136,843 . Total revenues 76,770 139,578 328,488 153,789 4,928,015 . . EXPENDITURES: Current: . General government 209,441 . Public safety 112,982 123,324 Transportation 26,962 . Capital outlay 198,411 894,086 . Total ex-penditures 311,393 1,253,813 ..... WI' EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES 76,770 139,578 17,095 I53,789 3,674,202 - - - OTHER FINANCING SOURCES (USES): - Operating transfers in 1,095,100 - - Operating transfers out (3,857, I19) - - Total other financing sources (uses) (2,762,019) - - - EXCESS (DEFICIENCY) OF REVENUES AND - OTHER FINANCING SOURCES OVER - (UNDER) EXPENDITURES AND OTHER - - USES 76,770 139,578 17,095 153,789 912,183 - - FUND BALANCES AT BEGINNING OF YEAR 72,020 124,593 209,138 2,296,850 FUND BALANCES AT END OF YEAR $148,790 $264,171 $226,233 $153,789 $ 3,209,033 (Concluded) - 47 - . . . . CITY OF WINTER SPRINGS, FLORIDA . . SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES, EXPENDITURES, . AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30,1999 . . Police Education Fund Special Law Enforcement Trust Fund Variance Variance . Favorable Favor.ible . ~ AmW (Unfavorable) ~ ~ (Unfavorable) . REVENUES: Taxes and special assessments $ $ $ - $ $ $ - . Licenses, permits, and fees . Intergovernmental revenues Charges for services . Fines and forfeitures 16,500 21,898 5,398 37,591 37,~iJ Interest 50 35 (15) 200 462 262 . Miscellaneous 2,275 2,275 . Total revenues 16,550 21,933 5,383 200 40,328 40,128. . - EXPENDITURES: WI' Current: ..... General government - Public safety 12,000 10,342 1,658 ..... Transportation - - Capital outlay 45,000 45,673 (0173) - - Total expenditures 12,000 10,342 1,658 45,000 45,673 (673) - - - EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES 4,550 ~ 7,041 (44,800) (5,345) 39,455 - - OTHER FINANCING SOURCES (USES): Operating transfers in - Operating transfers out Total other financing sources (uses) - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 4,550 11,591 7,041 (44,800) (5,345) 39,455 FUND BALANCES AT BEGINNING OF YEAR 2,299 2,299 9,298 9,298 FUND BALANCES AT END OF YEAR $ 6,849 $ 13,890 $7,041 $ (35,502) $ 3,953 $39,455 = = - 48 - . . . . . . . . . . . . . . . . . . . ..... ... ..... ... ..... - - - - - - - - - - - Transportation Improvement Fund Variance Favorable ~ ~ (Unfavorablel Recreation Acquisition Fund Variance Favorable ~ ~ (Unfavorablel Streetlighting Fund Variance Favoratile ~ ~ (Unfavorable) $ $ $ $ $ $ $ - $ - $ - 200,000 208,704 8,704 7,000 7,028 28. 2,000 487 (1,513) 500 564 64 7 7' 202,000 209,191 7,191 500 564 64 7,000 7,035 35 7,000 6,187 813 48,920 17,279 31,641 189,500 136,994 52,506 238,420 154,273 84,147 7,000 6,187 813 (36,420) 54,918 91,338 500 564 64 848 848 (36,420) 54,918 91,338 500 564 64 848 848 55,989 55,989 26,537 26,537 669 669 $ 19,569 $110,907 $91,338 $27,037 $27,101 = $ 64 $ 669 $1,517 $ 848 (Continued) - 49- . . . . CITY OF WINTER SPRINGS, FLORIDA . . SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) . YEAR ENDED SEPTEMBER 30,1999 . . Solid Waste Fund Interim Services Fee Fund Variance Variance . Favorable Favorable ~ Arurnl /Unfavorable) ~ ~ (Unfavorable} . . REVENUES: Taxes and special assessments $ $ $ $ $ $ - . Licenses, permits, and fees 30,000 26,291 (3,700) . Intergovernmental revenues Charges for services 1,360,522 1,423,585 63,063 . Fines and forfeitures Interest 450 108 (342) . Miscellaneous . Total revenues 1,360,522 1,423,585 63,063 30,450 26,399 (4,05!) . . EXPENDITURES: . Current: . General government 1,151,719 1,197,026 (45,307) Public safety . Transportation . Capital outlay . Total expenditures 1,151,719 1,197,026 (45,307) . EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES 208,803 226,559 17,756 30,450 26,399 (4,051 ) - ... OTHER FINANCING SOURCES (USES): ... Operating transfers in ... ... Operating transfers out (98,000) (98,400) (400) (32,074) (29,424) 2,650 - - Total other financing sources (uses) (98,000) (98,400) (400) (32,074) (29,424) 2,650 ..... - - EXCESS (DEFICIENCY) OF REVENUES AND - OTHER FINANCING SOURCES OVER (UNDER) - EXPENDITURES AND OTHER USES 110,803 128,159 17,356 (1,624) (3,025) (1,401) - - - FUND BALANCES AT BEGINNING OF YEAR 164,630 164,630 3,025 3,025 - - FUND BALANCES AT END OF YEAR $ 275,433 $ 292,789 $ 17,356 $ 1,401 $ $ (1,401) - - - - - 50- . . . . . . . . . Stormwater Utility Fund Public Service Tax Fund Excise Tax Fund Variance Variance Variance . Favorable Favorable Favorable ~ Actual (Unfavorablel ~ ~ (Unfavorable) ~ ~ (Unfavorable) . . $ $ $ $ 1,671,381 $ 1,732,790 $ 61,409 $ 988,785 $ 1,060,100 $ 71,3l5 . . 325,000 333,055 8,055 . 2,000 1,457 (543) 4,340 4,976 636 . . 327,000 334,512 7,512 1,675,721 1,737,766 62,045 988,785 1,060,100 7/,3'15 . . . 267,838 197,637 70,201 . - 92,475 41,630 50,845 - .. 360,313 239,267 121,046 .. ..... .. - (33,313) 95,245 128,558 1,675,721 1,737,766 62,045 988,785 1,060,100 71,315 - - - - 35,000 35,000 - (1,675,721 ) (1,626,592) 49,129 (988,785) (1,060, I 00) (71,315) - 35,000 35,000 (1,675,721) (1,626,592) 49,129 (988,785) (J ,060, I 00) (71,31 5) - - - 1,687 130,245 128,558 111,174 111,174 53,419 53,419 17,302 17,302 $ 55,106 $183,664 $128,558 $ 17,302 $ 128,476 $111,174 $ $ $ (Continued) - 5] - . . . . CITY OF WINTER SPRINGS, FLORIDA . . SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES, EXPENDITURES, . AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30, 1999 . . Electric Franchise Fee Fund Transportation Impact Fee Fund Variance Variance . Favorable Favorable . ~ ~ (Unfavorablel ~ AklY.al (Unfavorable) . REVENUES: Taxes and special assessments $ $ $ $ $ $ . Licenses, permits, and fees 354,000 493,269 139,269 . Intergovernmental revenues Charges for services . Fines and forfcitures . Intcrest 3,190 2,630 (560) 60,000 69,104 9,104 Miscellaneous . Total revenues 3,190 2,630 (560) 414,000 56i,373 148,373 . . EXPENDITURES: Current: . General government 7,500 5,617 1,883 - Public safety WI' Transportation 85,000 9,683 75,317 - Capital outlay 965,000 471,378 493,622 ... ..... Total expenditures 7,500 5,617 1.883 1,050,000 481,061 568,939 - - - EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES (4,310) (2,987) 1,323 (636,000) 81,312 717,312 - - - OTHER FINANCING SOURCES (USES): - Operating transfers in 988,785 1,060, I 00 71,315 - Operating transfers out (984,475) (1,042,603 ) (58,128) - - Total other financing sources (uses) 4,310 17,497 13,187 - - - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 14,510 14,510 (636,000) 81,312 717,312 FUND BALANCES AT BEGINNING OF YEAR 276 276 1,557,655 1,557,655 FUND BALANCES AT END OF YEAR $ 276 $ 14,786 $ 14,510 $ 921,655 $ 1,638,967 $717,312 - 52 - (Continued) - 53 - . . . . CITY OF WINTER SPRINGS, FLORIDA . . SPECIAL REVENUE FUNDS. COMBINING STATEMENT OF REVENUES, EXPENDITURES, . AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30,1999 . . TLBD Improvement Fund Totals Variance Variance . Favorable Favoratlle . ~ &.lYID (Unfavorable) ~ ~ (Unfavorablel . REVENUES: Taxes and special assessments $ $153,378 $153,378 $ 2,660,166 $ 2,946,268 $ 286,1:fl2 . Licenses, permits, and fees 505,000 730,022 225,012 . Intergovernmental revenues 200,000 208,704 8,704 Charges for services 1,792,522 1,951,293 158,7i711 . Fines and forfeitures 16,500 59,489 42,989 Interest 411 411 77,030 92,422 15,392 . Miscellaneous 0 136,843 136,843 . Total revenues 153,789 153,789 5,251,218 6,125,041 873,823. . . EXPENDITURES: Current: . General government 1,434,057 1,406,467 27,590 Publ ic safety 57,000 123,324 (66,314) - Transportation 133,920 26,962 106,958 - ..... Capital outlay 1,507,358 894,086 613,2771 - - Total expenditures 3,132,335 2,450,839 681,496 - - - EXCESS (DEFICIENCY) OF REVENUES - OVER (UNDER) EXPENDITURES 153,789 153,789 2,118,883 3,674,202 1,555,3U'9 - -- - OTHER FINANCING SOURCES (USES): - - Operating transfers in 1,023,785 1,095,100 71,315 - Operating transfers out (3,779,055) (3,857,] 19) (78,064) - Total other financing sources (uses) (2,755,270) (2,762,019) (6,749) - - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 153,789 153,789 (636,387) 912,183 1,548,570 FUND BALANCES AT BEGINNING OF YEAR 2,296,850 2,296,850 FUND BALANCES AT END OF YEAR $ $153,789 $153,789 $ 1,660,463 $ 3,209,033 $ 1,548,570 (Concluded) - 54- . . . . . . . . . . . . . . . . . . . . . . . . DEBT SERVICE FUNDS Debt service funds are used to account for the accumulation of resources and payment of the bond issues of the City. 1989 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1989 bond issue. 1993 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1993 bond issue. 1997 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1997 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. - .. ..... WI' ..... - ..... WI' ..... .. ... - - - - - - - - - - - - - - - - - - - - - - - 55 - . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA DEBT SERVICE FUNDS - COMBINING BALANCE SHEET SEPTEMBER 30, 1999 1993 Debt 1997 Debt 1999 Debt ASSETS Service Fund Service Fund Service Fund :urtal Cash and cash equivalents $269,454 $ 124,126 $217,988 $611,568 Investments TOTAL $269,454 $ 124, 126 $217,988 $611,568 FUND EQUITY Fund balance - reserved for debt service $269,454 $124,126 $217,988 $611,568 - WI' . . TOTAL $269,454 $124,126 $217,988 $611,568 ... ... ... WI' - WI' ..... - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 56- . . . . CITY OF WINTER SPRINGS, FLORIDA . . DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES . YEAR ENDED SEPTEMBER 30,1999 . . 1989 Debt 1993 Debt 1997 Debt 1999 Debt . Service Fund Service Fund Service Fund Service Fund Ia1a.l . REVENUES - Interest $ 22,380 $ 57,186 $ $ 899 $ 80,465 . EXPENDITURES: . Principal retirement 285,000 105,000 390,000 . Interest and fiscal charges 212,150 454,893 25,912 692,955 Payment to escrow agent 652,000 652,000 . Bond issuance costs 25,404 297,398 322,802 . Total expenditures 864,150 765,297 130,912 297,398 2,057,757 . . EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (841,770) (708, III) (130,912) (296,499) (1,977,292) . . OTHER FINANCING SOURCES (USES): Operating transfers in 308,175 459,713 132,983 164,827 1,065,698 . Operating transfers out (944,819) (944,819) ... Bond proceeds 2,597,053 2,597,053 - Payment to escrow agent (2,328,288) (2,328,288) ..... - - 308,175 (485,106) 132,983 433,592 389,644 - - - EXCESS (DEFICIENCY) OF REVENUES - AND OTHER FINANCING SOURCES - OVER (UNDER) EXPENDITURES - - AND OTHER USES (533,595) (I, I 93,217) 2,071 137,093 (1,587,648) - - FUND BALANCES AT BEGINNING - - OF YEAR 614,490 1,462,671 122,055 2,199,216 - - - RESIDUAL EQUITY TRANSFER IN 80,895 80,895 - - RESIDUAL EQUITY TRANSFER OUT (80,895) (80,895) - FUND BALANCES AT END OF YEAR $ $ 269,454 $ 124,126 $ 217,988 $ 611,568 - 57- . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA DEBT SERVICE FUNDS - COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30, 1999 ... - ... - ..... - - WI' - - - - - - - - 1989 Debt Service Fund Variance Favorable Budget Actual (Unfavorable) REVENUES - Interest $ 28,500 $ 22,380 $ (6,120) EXPENDITURES: Principal retirement Interest and fiscal charges 212,150 212,150 Total expenditures 212,150 212,150 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (183,650) (189,770) (6,120) OTHER FINANCING SOURCES (USES): Operating transfers in 183,650 308,175 124,525 Operating transfers out Bond proceeds Payment to escrow agent Total other financing sources (uses) 183,650 308,175 I24,525 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 118,405 118,405 FUNDBALANCESATBEG~GOFYEAR 614,490 614,490 RESIDUAL EQUIlY TRANSFER IN RESIDUAL EQUlY TRANSFER OUT (80,895) (80,895) FUND BALANCES AT END OF YEAR $ 614,490 $ 652,000 $ 37,510 - - - - - - - - - - - - - - - - 58 - . . . . . . . . . 1993 Debt Service Fund 1997 Debt Service Fund . Variance Variance . Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable' . . $ 61,800 $ 57,186 $ (4,6I4) $ 93 $ $ (93) . . 285,000 285,000 110,000 105,000 5,000 454,893 454,893 22,893 25,912 (3,019) . ..... 739,893 739,893 132,893 130,912 1,98I ... ... WI' ..... (678,093) (682,707) (4,614) (132,800) (130,912) 1,888 ... ..... - ..... 678,093 459,713 (218,380) 132,800 I32,983 183 - - (944,8]9) (944,8] 9) - - - - - 678,093 (485,106) (1,163,199) 132,800 132,983 ]83 - (1,167,813) (1,167,813) 2,071 2,071 1,462,671 ],462,671 ]22,055 122,055 $] ,462,67] $ 294,858 $(1, I67,813) $ 122,055 $ 124,126 $ 2,071 (Continued) - 59 - . . . . . . . . . . . . . . . . . . . . . - WI' ... ... ... WI' - - - - - CITY OF WINTER SPRINGS, FLORIDA DEBT SERVICE FUNDS - COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30, 1999 1999 Debt Service Fund Variance Favorable Budaet Actual (Unfavorable' REVENUES - Interest $ $ 899 $ 899 EXPENDITURES: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 899 899 164,827 164,827 2,597,053 2,597,053 (2,328,288) (2,328,288) 433,592 433,592 OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds Payment to escrow agent Total other financing sources (uses) - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 434,491 434,49I - - FUND BALANCES AT BEGINNING OF YEAR - - - RESIDUAL EQUllY TRANSFER IN 80,895 80,895 - RESIDUAL EQUlY TRANSFER OUT - - FUND BALANCES AT END OF YEAR $ $ 515,386 $ 515,386 - 60- . . . . . . . . . Totals . Variance . Favorable . Budget Actual (Unfavorable) . $ 90,393 $ 80,465 $ (9,928) . . 395,000 390,000 5,000 . 689,936 692,955 (3,019) . 1,084,936 1,082,955 1,981 . . (994,543) (1,002,490) (7,947) ..... - ..... - 994,543 1,065,698 71,155 - (944,8I9) (944,819) - - 2,597,053 2,597,053 - (2,328,288) (2,328,288) - - - 994,543 389,644 (604,899) (612,846) (6I2,846 ) 2,199,216 2,199,216 80,895 80,895 (80,895) (80,895) $2,199,2I6 $1,586,370 $ (612,846) (Concluded) - 61 - . . . . . . . . . . . . . . . . . . CAPIT AL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. 1997 Construction Fund - This fund was established for the acquisition and construction of City-owned Capital Improvements. 1999 Construction Fund - This fund was established for the acquisition and construction of City-owned Capital Improvements. ... ., ..... - - - - - - - - - - - 62- . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA CAPITAL PROJECTS FUNDS - COMBINING BALANCE SHEET SEPTEMBER 30,1999 - ., ..... ... - ... - ... 1997 1999 Construction Construction ASSETS .Eumt .Eumt IQla1 Cash and cash equivalents $ 108,500 $5,713,155 $ 5,821 ,655 Accrued interest receivable 29,618 29,618 TOTAL $ 108,500 $5,742,773 $5,851,273 LIABILITIES Accounts payable $ $ 66, I60 $ 66,160 Due to other funds 77 77 77 66,160 66,237 FUND EaUITY Fund balances: Reserved for encumbrances 43,690 43,690 Reserved for capital projects 108,423 5,632,923 5,741,346 Total fund equity 108,423 5,676,613 5,785,036 TOTAL $ 108,500 $5,742,773 $ 5,851,273 - - - - - - - - - - - 63 - . . . . . . . . . . . . . . . . . . . ..... ~ ... - - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1999 1997 1999 Construction Construction E.umt Ew1d REVENUES - Interest $ 7,518 $ 51,666 EXPENDITURES - Capital outlay 130,658 370,439 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (123,140) (318,773) OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds 898,602 (305,771) 5,402,555 Total other financing sources (uses) 5,995,386 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (123,140) 5,676,613 FUND BALANCES AT BEGINNING OF YEAR 231,563 FUND BALANCES AT END OF YEAR $ 108,423 $ 5,676,613 - 64- I2W $ 59,184 501,097 (441,913) 898,602 (305,771) 5,402,555 5,995,386 5,553,473 231,563 $ 5,785,036 . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA CAPITAL PROJECTS FUNDS - COMBINING STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30, 1999 1997 Construction Fund EXPENDITURES - Capital outlay 155,983 variance Favorable ~ (Unfavorable) $ 7,518 $ (2,482) 130,658 25,325 Budget REVENUES - Interest $ 10,000 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (145,983) (123,140) 22,843 OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds Total other financing sources (uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (145,983) (123,140) 22,843 - - - - - - - - - - FUND BALANCES AT BEGINNING OF YEAR 231,563 231,563 FUND BALANCES AT END OF YEAR $ 85,580 $ 108,423 $ 22,843 - - - - - - - 65 - . . . . . . . . . 1999 Construction Fund Totals . variance variance . Favorable Favorable Budget Ac1ual (Unfavorable) Budget Ac1ual (Unfavorable) . . $ 100,000 $ 51,666 $ (48,334) $ 110,000 $ 59,184 $ (50,816) . 762,500 370,439 392,061 918,483 501,097 417,386 . . (662,500) (318,773) 343,727 (808,483) (441,913) 366,570 . . 900,000 898,602 (1,398) 900,000 898,602 (I,398) . (305,771) (305,771) (305,771) (305,771 ) 5,500,000 5,402,555 (97,445) 5,500,000 5,402,555 (97,445) ..... - - 6,400,000 5,995,386 (404,614) 6,400,000 5,995,386 (404,614) - - - - - 5,737,500 5,676,613 (60,887) 5,591,517 5,553,473 (38,044) - - - 231,563 231,563 - - $5,737,500 $5,676,613 $ (60,887) $ 5,823,080 $ 5,785,036 $ (38,044) - 66- . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES - GENERAL FUND - BUDGET AND ACTUAL (BUDGETARY BASIS) YEAR ENDED SEPTEMBER 30,1999 ... WI' - - - - Variance Favorable ~ ~ Unfavorable GENERAL GOVERNMENT: Commission $ 83,322 $ 82,194 $ 1,128 Various boards ]0,700 5,867 4,833 City manager 223,522 179,482 44,040 City clerk 265,983 315,369 (49,386) Finance 342,208 327,862 14,346 Personnel 60,346 57,867 2,479 Information services 197,443 184,454 12,989 Purchasing 205,805 251,842 (46,037) Utility billing 379,884 350,003 29,881 Engineering 94,305 91,830 2,475 Community development 279,270 220,091 59,179 Land management 62,186 55,408 6,778 General government 33,500 394,571 (361,071) Total general government 2,238,474 2,516,840 (278,366) PUBLIC SAFETY: Police 2,866,1 11 2,975,229 (109,118) Fire 2,016,632 1,923,133 93,499 Building 247,934 231,022 16,912 Code enforcement 133,354 102,487 30,867 Total public safety 5,264,031 5,231,871 32.160 TRANSPORTATION - Public works 1,167,429 1,092,223 75,206 CULTURE AND RECREATION - Recreation 995,959 1,042,556 (46,597) CAPITAL OUTLAY: Commission 10,825 14,444 (3,619) City manager 3,325 845 2,480 City clerk 32,374 4,231 28,143 Finance 33,274 9,747 23,527 Personnel 3,325 845 2,480 Purchasing 6,650 2,140 4,510 Information services ( 160,203) 74,412 (234,615) Utility billing 29,549 16,063 13,486 Engineering 9,250 1,691 7,559 Land managernent 5,925 845 5,080 Community development 10,999 3,219 7,780 General government 33.000 2,718 30,282 Police 133,910 46,533 87,377 Fire 68,702 33,272 35,430 Building 42,974 18,491 24,483 Code enforcement 12,674 4,449 8,225 Public works 223,824 104,181 119,643 Recreation 58,100 58,899 (799) Total capital outlay 558,477 397,025 161,452 TOTAL EXPENDITURES $10,224,370 $10,280,515 $ (56,145) - 67- - - - - - - - - - - . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - ENTERPRISE FUND - WATER AND SEWER UTILITY - OPERATING ACCOUNT YEAR ENDED SEPTEMBER 30, 1999 Budget Actual REVENUES: Water revenues $ 2,162,500 $2,395,441 Sewer revenues 2,978,448 2,989,994 Water connection fees 50,000 211,184 Sewer connection fees 240,000 877,679 Reuse water fees 35,000 50,212 Guaranteed revenues 39,000 20,651 Turn off/on fees 5,000 165 Meter/charges 30,000 64,165 Backflow device fees 300 Application fees 20,000 31,900 Tampering fees 100 Inspection fees 6,500 9,240 NSF check fees 4,000 2,469 Interest earned 237,500 252,455 Miscellaneous revenues 20,000 51,217 Reservation charges 33,000 36,960 Stonnwater administration fee 5,660 5,660 Operating transfer in 25,000 25,000 Total revenues 5,891,708 7,024,692 EXPENSES: Salaries 919,330 916,053 F.I.C.A taxes 70,597 65,791 Health!1ife/disability insurance 66,058 59,770 Workers' compensation insurance 20,942 18,212 Pension expense 72,667 68,827 Other legal services 10,000 4,543 Physical examinations 1,600 748 Consulting engineer 15,000 16,786 Consultant-rate study 36,760 4,935 Audit/administrative services 640,000 640,000 Travel and per diem 1,000 987 Telephone 6,500 7,600 Postage 1,400 640 Utility services 395,000 368,681 Sludge disposal 48,000 47,138 .. WI' .. ... .. ... - - - - - - - - - - - - 68 - Variance Favorable (Unfavorable) $ 232,941 11,546 161,184 637,679 15,2I2 (18,349) (4,835) 34,165 300 11,900 (100) 2,740 (1,531) 14,955 31,217 3,960 1,132,984 3,277 4,806 6,288 2,730 3,840 5,457 852 (1,786) 31,825 13 (1,100) 760 26,319 862 (Continued) . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - ENTERPRISE FUND - WATER AND SEWER UTILITY - OPERATING ACCOUNT YEAR ENDED SEPTEMBER 30,1999 Budget Equipment rental Repair and maintenance - equipment Repair and maintenance - communications Repair and maintenance - vehicles Repair and maintenance - buildings Repair and maintenance - fire hydrants Repair and maintenance - water plants Repair and maintenance - sewer plants Repair and maintenance - effluent disposal Repair and maintenance - water lines Repair and maintenance - sewer lines Repair and maintenance - lift stations Copy machine supplies Printing expenses Promotional activities Employee relations Classified advertising Office supplies Fuel and oil Tires and filters Operating supplies Testing and samples Purchased meters Chlorine Backflow devices Uniforms Janitorial supplies Small tools and equipment Protective clothing Subscriptions Dues and registrations Employee development Capital improvements - renewal and replacement Improvements other than building Capital project/revenue generation fund Computer equipment allocation Computer support allocation 5,000 33,735 500 13,000 6,500 10,000 25,000 42,000 29,000 26,000 20,000 22,000 540 1,000 500 825 1,500 1,950 23,000 5,000 57,500 20,000 57,650 50,000 5,000 7,032 1,300 8,000 3,099 100 2,180 7,500 122,000 1,141,240 30,000 9,473 10,476 ... .. - - ..... - - - - - - - - - - - - - - - - - - - - 69- Actual 3,248 120,426 355 8,785 6,322 9,579 23,347 39,462 29,008 25,389 16,761 21,655 150 693 1,001 1,893 25,624 4,854 56,8I6 11,329 55,466 32,958 1,123 6,173 1,280 8,077 3,115 86 2,027 7,467 98,335 477,422 33,197 4,498 Variance Favorable (Unfavorable) 1,752 (86,691) 145 4,215 178 421 1,653 2,538 (8) 611 3,239 345 390 307 500 825 499 57 (2,624) 146 684 8,671 2,184 17,042 3,877 859 20 (77) (16) 14 153 33 23,665 663,818 (3,197) 9,473 5,978 (Continued) . . . . . . . . . . . . . . . . . . . . . . . . - ... ... - ... - - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - ENTERPRISE FUND - WA TER AND SEWER UTILITY - OPERATING ACCOUNT YEAR ENDED SEPTEMBER 30, 1999 Budget Actual Vehicles 72,000 70,683 Other equipment 52,550 39,673 Debt service - principal 710,000 710,000 Debt service - interest 1,455,511 1,448,566 Total eXllenses 6,394,515 5,627,554 EFFECT OF ACCRUALS NOT INCLUDED IN ACTUAL REVENUES AND EXPENSES ABOVE 167,916 167,916 NET (LOSS) INCOME (334,891) 1,565,054 TRANSFERS FROM OTHER BANK ACCOUNTS 95,128 95,128 TRANSFERS TO OTHER BANK ACCOUNTS (282,545) (282,545) (DECREASE) INCREASE IN CASH (522,308) 1,377,637 CASH, BEGINNING OF YEAR 806,239 806,239 CASH, END OF YEAR $ 283,931 $2,183,876 Variance Favorable (Unfavorable) 1,317 12,877 6,945 766,961 1,899,945 1,899,945 $ 1,899,945 NOTE: Budget and actual information presented on this schedule differs from accounting principles generally accepted in the United States of America (GAAP) in that accruals are not considered, the non-cash items of depreciation, amortization, bad debt expense, and loss on disposal of assets are not recognized as an expense, and items requiring cash outlay but not considered eXllenses under GAAP, including payments for debt service principal, capital improvements, improvements other than building, capital project/revenue generation fund, vehicles, and other equipment, are recognized as an expense. - - - - 70- (Concluded) I II ~~ II II II II l~ l~ ~~ ~4.4 .4.4.~.4.~.4.~~........................ CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF SUPPLEMENTAL CASH FLOWS - ENTERPRISE FUND - WATER AND SEWER UTILITY YEAR ENDED SEPTEMBER 30,1999 Debt Service Renewal and Revenue Debt Service Debt Service 92 Sinking Customer 1997 Utility 1997 Debt Operating Replacement Generation 91 Sinking 92 Sinking Reserve Deposits Construction Service Account Account Account Account Account Account Account EYmI EYmI I2ml CASH AND INVESTMENTS, BEGINNING OF YEAR $ 806,239 $278,862 $483,245 $321,966 $627,044 $1,184,988 $501,283 $1,609,663 $314,174 $ 6,127,464 Transfer to other bank accounts (282,545) 3,723 37,133 9,470 232,219 Transfer from other bank accounts 95,128 (33,783) (54,449) (6,896) Debt service: Principal (710,000) (710,000) Interest (1,448,566) ( 1,448,566) Capital outlay (400,387) (318,924) (719,311) Operating revenues 5,677,715 5,677,715 Operating expenses (1,553,708) (1,553,708) CASH AND INVESTMENTS, END OF YEAR $ 2,183,876 $282,585 $520,378 $331,436 $593,261 $1,130,539 $733,502 $1,290,739 $307,278 $ 7,373,594 . 71 . . . . . . . . . . . . . . . . . . . . .. - .. ... ..... - - - - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA TABLE 1 - GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS Fiscal General Public Trans- Culturel Capital Debt Year Government Safety portation Recreation Outlay Service Total 1990 $ 854,597 $ 2,672,668 $ 686,118 $ 108, 102 $ 518,449 $ 661,335 $ 5,501,269 1991 938,055 2,954,026 765,017 182,444 1,196,428 791,345 6,827,315 1992 964,622 3,020,447 795,276 344,054 2,356,816 791,145 8,272,360 1993 1,176,983 3,122,557 923,250 556,109 1,125,814 597,969 7,502,682 1994 1,265,435 3,299,148 820,962 634,147 668,910 934,731 7,623,333 1995 1,524,584 3,556,352 1,011,424 706,716 1,114,097 1,078,491 8,991,664 1996 1,522,378 3,684,567 1,153,694 753,557 1,516,789 1,012,325 9,643,310 1997 1,950,449 4,108,319 1,084,121 814,125 2,454,088 963,044 11,374,146 1998 2,591,811 4,725,544 1,159,944 843,115 2,705,800 967,605 12,993,819 1999 2,726,281 5,355,195 1,119,185 1,042,556 1,792,208 2,057,757 14,093,182 Includes the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service Funds. Source: City of Winter Springs Finance Department - 72 - . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA TABLE 2. GENERAL GOVERNMENTAL REVENUES BY SOURCE LAST TEN FISCAL YEARS Licenses Intergovern- Charges Fines Fiscal and mental for and General Miscellaneous Year Taxes Permits Revenues Services Forfeitures Government Interest Revenues Total 1990 $3,196,040 $ 577,505 $1,781,747 $ 64,960 $209,394 $ 453,350 $ $133,734 $ 6,416,730 1991 3,720,415 456,631 1,764,106 35,369 221,686 370,682 48,150 6,617,039 1995 4,011,756 664,848 1,731,717 45,365 274,510 65,802 6,793,998 1993 4,308,605 1,023,098 1,843,049 97,393 258,626 184,541 66,655 7,781,967 1994 4,970,690 1,222,808 1,863,892 104,724 169,940 342,169 305,127 8,979,350 1995 4,874,118 857,024 2,020,651 132,191 154,556 462,256 610,659 9,111,455 1996 5,234,145 949,701 2,183,187 206,210 178,234 429,517 595,403 9,776,391 1997 5,406,995 990,477 2,290,120 687,152 208,667 454,922 641,202 10,679,535 1998 5,967,375 943,220 2,583,849 742,766 183,714 447,343 737,539 11,605,806 1999 6,298,975 1,762,848 2,918,244 914,748 249,206 383,955 927,367 13,455,343 Includes the General Fund, Special Revenue Funds, Capital Projects Funds, and the Debt Service Funds. Source: City of Winter Springs Finance Department ..... - - - - - - - - - - - - - - - - 73 - . . . . . . . . . . . . . . . . . . . - - ..... - - - - - - - CITY OF WINTER SPRINGS, FLORIDA TABLE 3 - PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Current Percent Delinquent Total Total Collecti9ns Fiscal Total Tax of Levy Tax Tax as a Percent Year Tax Levy (1) Collections (2) Collected Collections (2) Collections of Current Levy 1990 $1,539,579 1991 2,070,546 1992 2,299,468 1993 2,333,990 $2,232,344 95.64 % $ 810 $2,233,154 95.68 % 1994 2,610,826 2,507,783 96.05 % 4,161 2,511,944 96.21 % 1995 2,665,426 2,559,179 96.01 % 16,817 2,575,996 96.64 % 1996 2,769,752 2,670,643 96.42 % 9,896 2,680,539 96.78 % 1997 2,882,773 2,786,845 96.67 % 4,636 2,791,481 96.83 % 1998 3,074,799 2,960,328 96.28 % 7,678 2,968,006 96.53 % I999 3,215,932 3,097,939 96.33 % 25,225 3,123,164 97.12 % (1) Gross taxes before discounts of 1 % - 4%, depending on month paid. (2) Collection infonnation is not available before 1993. Source: Seminole County Tax Collector's Office - 74- . . . . . . . . . . . . . . . . . - WI' - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA TABLE 4 - ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (AMOUNTS EXPRESSED IN THOUSANDS) Ratio Centrally Assessed of and Total Real Property Personal Property Exemptions Total Assessed to Estimated Estimated Real and Taxable Estimated Total Fiscal Assessed Actual Assessed Actual Personal Assessed Actual Estimated Year Value Value Value Value Property Value Value Actual Value 1990 $ 632,758 $ 659,610 $ 17,966 $18,734 $137,532 $513,192 $ 678,344 75.65 % 1991 705,919 729,046 20,659 21,342 153,861 572,717 750,388 76.32 % 1992 785,825 785,623 21,264 21,264 171,051 636,038 806,887 78.83 % 1993 802,113 801,890 20,920 20,920 177,446 645,587 822,810 78.46 % 1994 830,212 829,973 21,876 21,876 186,417 665,671 851,849 78.14 % 1995 882,544 882,258 22,455 22,455 196,599 708,400 904,713 78.30 % 1996 935,813 959,556 24,141 24,760 211,837 748,117 984,316 76.00 % 1997 992,796 1,00 1,788 26,362 26,601 220,230 798,928 1,028,389 77.69% 1998 1,061,983 1,061,983 27,701 27,701 235,565 854,119 1,089,684 78.38 % 1999 1,127,761 1,149,603 31,494 32,104 253,253 906,002 1,181,707 76.67 % Source: Seminole County Property Appraiser's Office - 75 - . . . . . . . . . . . . . . . . . . . . . . . . . ..... - ..... - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA TABLE 5 - PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Seminole St. John's River - City of County Water Fiscal Winter Seminole School Management Year Springs County Board District Total 1990 3.0000 4.5445 7.9900 0.3460 15.8805 1991 3.6153 5.5343 10.1690 0.3580 19.6766 1992 6.6153 5.6970 10.0890 0.3580 22.7593 1993 6.6153 5.4197 10.0710 0.3580 22.4640 1994 3.9221 5.3841 10.0930 0.4700 19.8692 1995 3.7626 5.3772 8.3370 0.2000 17.6768 1996 3.7023 5.3889 10.3080 0.4820 19.8812 1997 3.6083 5.3625 10.3080 0.4820 19.7608 1998 3.6000 5.1638 10.0360 0.4820 19.2818 1999 3.5495 5.1159 9.5410 0.4820 18.6884 Source: City of Winter Springs Finance Department Seminole County School Board Seminole County Finance Department - 76- . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA TABLE 6 - COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30, 1999 Net General Obligation Debt Outstanding Percentage Applicable to City of Winter Springs Jurisdiction Overlapping: Seminole County $16,600,000 6.85 % Seminole County School Board 52,155,000 6.85 % Total Overlapping Debt 68,755,000 Total Direct Debt (I) Total Direct and Overlapping Debt $68,755,000 (I) The City of Winter Springs does not currently have any general obligation debt that is being repaid through general property taxes. ..... ... . - - - - - - Source: Seminole County Finance Department Seminole County School Board Seminole County Property Appraiser - - - - - - - - - - 77- Amount Applicable to City of Winter Springs $1,137,100 3,572,618 4,709,718 $4,709,718 . . . . . . . . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA TABLE 7 - REVENUE BOND COVERAGE. WATER AND SEWER BONDS LAST TEN FISCAL YEARS Net Direct Available Debt Service Requirements Operating For Debt Fiscal Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage 1990 $ 3,098,362 $ 1,342,440 $ 1,755,922 $ 65,000 $ 900,544 $ 965,544 1.82 1991 4,046,714 1,956,782 2,089,932 35,000 1,325,075 \,360,075 1.54 \992 4,376,764 2,075,965 2,300,799 35,000 1,092,724 1,127,724 2.04 \993 4,483,245 2,204,512 2,278,733 85,000 \,295,491 1,380,491 1.65 \994 4,996,647 2,069,377 2,927,270 90,000 1,378,282 1,468,282 1.99 1995 5,458,540 2,641,274 2,8\7,266 95,000 \,373,597 1,468,597 1.92 1996 5,269,291 2,336,777 2,932,5\4 415,000 \,358,416 \,773,416 1.65 1997 5,613,4\3 2,517,19\ 3,096,222 435,000 1,346,020 1,781,020 1.74 \998 5,924,1\2 2,696,506 3,227,606 455,000 \ ,405,724 \ ,860,724 1.73 1999 6,999,692 3,312,000 3,687,692 710,000 1,436,131 2,146,131 1.72 (I) "Revenues" include interest income, connection fees, and other incorne. (2) "Direct Operating Expenses" excludes depreciation and interest expense. Note: The figures since 1990 include the consolidation of the east and west water system. Source: City of Winter Springs Finance Departrnent - 78- . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA TABLE 8 - DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Population City of Winter Springs Fiscal Year Population Seminole County % Increase Population % Increase 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 22,151 22,790 23,352 24,008 24,772 25,673 26,474 27,466 28,404 29,220 2.16 % 2.88 % 2.47 % 2.81 % 3.18 % 3.64 % 3.12 % 3.75 % 3.42 % 2.87 % 287,521 298,057 305,872 310,890 316,555 326,203 329,031 337,498 345,166 354,148 Population Projections Year Seminole County 2000 2005 2010 361,900 399,800 436,100 .a ... - - - - - - Population Distribution by Age - - Age Seminole County - - - 0-14 15-24 25-44 45-64 65 and over 71,318 44,932 117,400 83,705 36,793 - Source: East Central Florida Regional Planning Council - 79- 3.67 % 3.66 % 2.62 % 1.64 % 1.82 % 3.05 % 0.87 % 2.57 % 2.27 % 2.60 % State of Florida 15,594,300 16,882,800 18,121,300 State of Florida 2,905,719 1,839,790 4,288,294 3,472,839 2,815,398 . . . . . . . . . . . . . . . . . . . . . . Per Capita Income, School Enrollment, and Unemployment Rate Fiscal Per Capita School Unemployment Year Income (1) Enrollment (2) Rate (3) 1990 19,041 1,876 5.30 % 1991 19,233 1,947 6.50 % 1992 20,117 1,961 7.00 % 1993 21,049 3,020 5.80 % 1994 22,080 3,268 5.40 % 1995 23,400 3,297 4.20 % 1996 24,852 3,390 3.30 % 1997 (4) 3,988 3.20 % 1998 (4) 5,967 2.60 % 1999 (4) 5,711 2.80 % (1) Source: Regional Economic Information System Bureau of Economic Analysis (2) Source: Seminole County School Board Information Services (3) Source: U.S. Department of Labor (4) This information is not available. ~ ... ~ WI' - - - - - - - - - - - - 80- . . . . . . . . . . . . . . . . . . . . . . . . ..... - - - - - - - - - - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA TABLE 9 - PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS (VALUES ARE IN THOUSANDS) Commercial Additionsl Bank Deposits (2) Residential Construction (1) Construction (1) Alterations (1) (in thousands) Number of Units Savings Fiscal Single Multi Total and Year Family Family Value Value Value Value Loans Banks 1990 270 12 $ 29,418 $ 2,693 $1,602 $33,713 $822,030 $1,519,024 1991 145 0 23,492 2,703 2,673 28,868 759,656 1,653,383 1992 228 0 24,512 983 1,801 27,296 641,693 1,765,214 1993 301 0 38,410 1,260 3,818 43,488 600,924 1,738,832 1994 411 0 48,965 2,000 4,200 55,165 553,084 1,849,924 1995 333 1 44,425 1,200 3,555 49,180 498,708 1,953,373 1996 335 2 43,550 655 5,445 49,650 494,844 2,058,040 1997 327 0 50,428 449 3,603 54,480 387,382 2,172,710 1998 337 I 56,760 1,331 4,410 62,501 423,557 2,272,861 1999 418 42 123,290 4,898 6,580 134,768 436,053 2,383,748 (I) Source: City of Winter Springs Building Department (2) Source: Florida Bankers Association Note: For savings and loans and bank deposits, numbers are as of Decernber 31 for 1989-1993. For 1994-1998, numbers are as of Septernber 30. All amounts are for entire Seminole County. - 81 - . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA TABLE 10 - PRINCIPAL TAXPAYERS SEPTEMBER 30,1999 Taxpayer Golf Terrace, Ltd. Florida Power Corp. United Dominion Realty Trust Hacienda Village Co-Op Time Warner Entertainment Southern BeIl Telephone Centex Homes TuskawiIla Investors, Inc. Partners Prefered Yield Inc. DR Horton, Inc. Total Taxable Assessed Valuation of Ten Largest Taxpayers - WI' ..... ... - - - - - - Total Taxable Assessed Valuation of Other Taxpayers Total Taxable Assessed Valuation of AIl Taxpayers - - Percentage of Total Type of Business Valuation Taxes Levied Taxable Value Property Management $ 12,085,061 $225,850 1.34 % Electric Utility 8,464,585 158,190 0.93 % Property Management 7,103,310 132,749 0.78 % Property Management 4,971,836 92,916 0.55 % Utilities 3,537,939 66,118 0.39 % Utilities 3,094,254 57,827 0.34 % Builder 2,938,204 54,910 0.32 % Developer 2,600,793 48,605 0.29 % Developer 2,023,710 37,820 0.23 % Builder 2,001,134 37,398 0.22 % 48,820,826 5.39% 857,212,007 94.61 % $ 906,032,833 100.00 % Source: Seminole County Property Appraiser's Office - - - - - - - 82- . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA TABLE 11 - MISCELLANEOUS STATISTICS SEPTEMBER 30, 1999 Date of Incorporation 1959 Form of Government Commission - City Manager City Charter Adopted 1972 Commission Composed of: 5 Members Area 14.6 square miles Miles of Streets 117 Fire Protection: Number of Fire Stations Number of Firefighters and Officers 2 37 Police Protection: Number of Police Stations Number of Sworn Officers 1 54 ..... - ..... - - - - - - - City Water System: Number of Customers A verage Daily Consumption Miles of Water Mains Plant Capacity - All Plants Deep Wells Number of Fire Hydrants 11,196 125 Gallons Per Capita 148 12,000,000 gallons 7 878 - - - - City Sewer System: Treatment Facility Capacity Current Average Flow Miles of Sanitary Sewer Lines 4,082,000 gallons 2,032,000 gallons 142 Building Permits Issued - Fiscal Year 1999 1,358 - - Recreation and Culture: Number of Community Parks Number of Neighborhood Parks Number of Mini-Parks 2 4 2 - City Employees: Classified Service Exempt 190 37 - 83 - . . . . . . . . . . . . . . . . . . . . . - WI' ..... - ..... - - - - - - - - Deloitte & Touche LLP Suite t 800 200 South Orange Avenue Orlando, Florida 32801 Certified Public Accountants Tel: (407) 246 8200 Fax: (407) 422 0936 www.us.deloitte.com Deloitte & Touche INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Commissioners of the City of Winter Springs, Florida: We have audited the general purpose financial statements of the City of Winter Springs, Florida (the "City") as of and for the year ended September 30, 1999, and have issued our report thereon dated August 24. 2000. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free of material misstatement, we perfonned tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be a material weakness. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters that we have addressed in a separate management letter dated August 24, 2000. This report is intended solely for the information and use of management and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. Cl . . - J .d~~ /".... q Ld August 24, 2000 Deloitte Touche Tohmatsu - 84- . . . . . . . . . . . . . . . . . . . . . . ..... - . ..... - - - - - - - - - - Deloitte & Touche LLP Suite 1800 200 South Orange Avenue Orlando. Florida 32801 Certified Public Accountants Tel: (407) 246 8200 Fax: (407) 422 0936 www.us.deloitte.com Oeloitte & Touche INDEPENDENT AUDITORS' MANAGEMENT lETTER To the Honorable Mayor and City Commissioners of the City of Winter Springs, Florida: We have audited the general purpose financial statements of the City of Winter Springs, Florida (the "City"), as of and for the fiscal year ended September 30, 1999, and have issued our report thereon dated August 24, 2000. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting based on the audit of the financial statements performed in accordance with Governmental Auditing Standards, dated August 24, 2000, and it should be considered in conjunction with this management letter. In planning and performing our audit of the financial statements of the City for the year ended September 30, 1999, we considered its internal controls in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the City's internal controls. However, we noted certain matters involving the City's internal controls and its operation on pages 87-88. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554 (1) (e) I.) state that a management letter shall include a statement as to whether or not inaccuracies, irregularities, shortages, defalcations, and/or violations of laws, rules, regulations, and contractual provisions reported in the preceding annual financial audit report have been corrected. There were no such items reported in the preceding annual financial report. The Rules of the Auditor General (Section 10.554 (1) (e) 2.) state that a management letter shall include a statement as to whether or not recommendations made in the preceding annual financial audit report have been followed. The results of our tests indicate that the recommendation made in the preceding annual financial audit report regarding budget monitoring has not been followed. This comment has been repeated in the current year. Oeloitte Touche Tohmatsu - 85 - . . . . . . . . . . . . . . . . . . . . . . . . The Rules of the Auditor General (Section 10.554 (1 ) (e) 3.) state that a management letter shall include a statement as to whether or .not a unit of local government is in a state of financial emergency as a consequence of conditions described in Section 218.503( 1), Florida Statutes. Section 218.503( I ) states that a local governmental entity is in a state of financial emergency when any of the following conditions occur: a) Failure within the same fiscal year in which due to pay short-tenn loans from banks or failure to make bond debt service payments when due. b) Failure to transfer at the appropriate time, due to lack of funds: (1) taxes withheld on the income of employees; or (2) employer and employee contributions for a) federal social security, or b) any pension, retirement, or benefit plan of an employee. c) Failure for anyone pay period to pay, due to lack of funds: (I) wages and salaries owed to employees; or (2) retirement benefits owed to fonner employees. d) An unreserved or total fund balance or retained earnings deficit for which sufficient resources of the local governmental entity are not available to cover the deficit for two successive years. e) Noncompliance of the local government retirement system with actuarial conditions provided by law. Section 218.503(2) states that a local governmental entity shall notify the Governor and the Legislative Auditing Committee when one or more of the conditions specified in Section 218.503(1) have occurred or will occur if action is not taken to assist the local governmental entity. ..... - - - - - - - - - Management of the City has detenn ined that the City is not in a state of financial emergency under Section 218.503( I). In connection with our audit of the financial statements of the City, the results of our tests did not indicate that the City is in a state of financial emergency as a consequence of the conditions in Section 218.503(1). However, our audit does not provide a legal detennination on the City's compliance with this requirement. - The Rules of the Auditor General (Section 10.554 (I) (e) 4.) state that a management letter shall include a statement as to whether or not the financial report filed with the Florida Department of Banking and Finance, pursuant to Section 218.32 (I) (a), Florida Statutes, is in agreement with the annual financial audit report for the current period. Our comparison of the information contained in the annual report to the City's 1999 audited financial statements resulted in no material differences. - - - This report is intended solely for the infonnation and use of management and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. C1 . '- IJ d~~ /.,,~..c. ld August 24, 2000 - 86- . . . . . . . . . . . . . . . . . . . . . . . - WI' - - - - CITY OF WINTER SPRINGS, FLORIDA MANAGEMENT LETTER COMMENTS YEAR ENDED SEPTEMBER 30, 1999 FINANCE DEPARTMENT Observation: The Finance Department experienced considerable employee turnover in key positions during 1999 and 2000. As a result, considerable delay occurred in the closing of fiscal 1999 books and records. Also as a result, fiscal 2000 month-end closings, posting of journal entries, account reconciliations, and record filing have tended to be delinquent. The City has recently hired a new Finance Director and is continuing its efforts to hire additional qualified personnel to remedy the difficulties experienced. Recommendation: Steps should be taken to identify all tasks, which remain delinquent in performance. A final plan should then be implemented, considering time necessary to address ongoing requirements and personnel availability, to ensure all delinquent tasks have been remedied. FINANCE DEPARTMENT POLICIES AND PROCEDURES Observation: Due to the extent of Finance Department personnel turnover, considerable revision is likely to transpire in tasks and procedures designated among department personnel. Recommendation: We recommend formalized policies and procedures be reevaluated and updated to ensure all necessary tasks are performed and to facilitate the process of transition for new personnel. Care should be taken to ensure appropriate controls, including segregation of duties, safeguarding of assets, and access to critical information, are in place. BUDGET MONITORING - - - Observation: Actual expenditures were in excess of budgeted expenditures for three Special Revenue Funds during fiscal 1999. - - Recommendation: It is our understanding that the City has implemented procedures to monitor budget versus actual expenditures, including line code transfers, the authorization of supplemental appropriations, and re-budgeting as appropriate. The City should continue to evaluate this process. - - - - ACCOUNTS RECEIVABLE - UTILITIES Observation: The accounts receivable aging report currently generated from Pentamation software reflects "current" and "delinquent" categories; however, the number of days delinquent is not available from the system. As a result, accounting personnel must spend significant time manually reviewing individual customer account balances to determine those balances to be turned over to collection agencies. In addition, if inadequate infonnation is available regarding the aging and collectibility of accounts receivable, management's estimate of the allowance for doubtful accounts may differ significantly from actual results. - 87- . . . . . . . . . . . . . . . . . . . . . . . . Recommendation: It is our understanding that the City intends to convert to a new financial software package in the next year. Consideration should be given to the adequacy ofthe accounts receivable aging aspect of the software. When converting, adequate history should be loaded into the new billing module to enable the full utilization of the accounts receivable aging function. MONITORING OF SERVICE PROVIDER Observation: Documentation was not available to support the City's monitoring procedures of its billing and collection service provider. Recommendation: It is our understanding that the Finance Department reconciles the number of emergency medical transports recorded by the Fire Department to the number of emergency medical transports billed by their service provider on a monthly basis. The City should ensure documentation is retained supporting the reconciliations to evidence that monitoring of the billing and collection function is perfonned. - - - - - - - - - - - - - - 88- . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Deloitte & Touche, LLP 200 S. Orange Avenue Orlando, FL 32801 Dear Sir or Madam: Your management comments related to fiscal year ended September 30, 1999 were well received by both the City Manager and the Finance Department. The comments represent opportunities for improvement, which we will pursue in fiscal year 2001 as opposed to fiscal year 2000 given the current date. Below are the responses to your management comments as required by the Rules of the Auditor General of the State of Florida. Finance Department We concur with the recommendation. The Finance Department will perform a thorough review of all tasks necessary to bring the books of record up to date and prepare a plan of action to ensure that they are remedied in a timely manner. ..... .. ..... - - - - - - Finance Department Policies and Procedures We concur with the recommendation. The Finance Department recognizes both the importance of and the need for updated formalized policies and procedures. The Department will incorporate the review and update of policies and procedures into its ongoing operations. - - Budget Monitoring We concur with the recommendation. Continued evaluation and refinement of processes including the budget process is a goal of the Finance Department. - Accounts Receivable - Utilities We concur with the recommendation. The City is in the process of contracting with a new financial software provider and will make it a point to thoroughly review the aging functions and reports as well as the conversion process. Monitoring of Service Provider We concur with the recommendation. The Finance Department plans to reorganize its closing files to ensure that appropriate documentation for its accounts is retained in an organized manner to support its reconciliation's. Sincerely, /a.IflI2z-f'/f) I)t/p Ronald W. McLemore City Manager ~O~ ~. (. .--:\-~~ Louise C. Frangoul Finance Director