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HomeMy WebLinkAbout2002 02 25 Regular A Comprehensive Annual Financial Report COMMISSION AGENDA ITEM A CONSENT INFORMA TIONAL PUBLIC HEARING REGULAR X February 25, 2002 Meeting MGR ~PT. J-:k A IIthnri7.Mion REQUEST: The Finance Department is requesting City Commission acceptance of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 200 I. PURPOSE: The presentation by the City Auditors of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 200 I. 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 9/30/0 I by the City Commission. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/01 including the audited financial statements and the audit opinion. COMMISSION ACTION: . . . . . . . . . . . . . . . . . . . . . . . . ctt;y orWCn,t-er spr~ FlorldtM Compr~{3/A nnuabFtnanctab Report- For ~ Year EndedSepC-ember 30J 2001 .- - -, .".'--"-"'-' ........~o<..~ -;'I".~~::..::.~ - . ... ... ... ... ... ... ... ... - - - - - - - - - - - - - - A/~ yender~oTti1e'futurBJ "Lalce:side- Pier>> at" tIu7 Wt.nter J'pYl41ffr T OWrv Cent:lw . . .. . . . . . . . . . .. ~ ... ~ ~ .... .. .. ~ .... ~ .... - - City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2001 - - - - - - Prepared by: Finance Department . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . , This page intentionally left blank'. . . . . . . . . . . . . . ... ., ... ... ... ... - - - - - - INTRODUCTORY SECTION This section contains the following subsections: - - - - - - Table of Contents Letter of Transmittal List of Principal Officials Organizational Chart Certificate of Achievement -. . . . . . . . . . . . . . . . . . . . . . . . . . . .- .. ... .. This page inte"ntionally left blank. . . . . . . . . ... .. - ... ... .- - - - - - - - . . . . . . . . . . . . . . . . ~ ... ~ ... ~ - - - - - - - - - - - CITY OF WINTER SPRINGS COMPREHFNSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2001 I. Intr,oductory Section: Table of Contents Letter of Transmittal List of Principal Officials Organization Chart Certificate of Achievement II. Financial Section: Independent Auditor's Report General Purpose Financial Statements (Combined Statements - Overview): Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types , Combined Statement of Revenues; Expenses and Changes in Retained E.arnings - All, Proprietary Fund Types Combined Statement of Changes in Pension Fund Net Assets Combined Statement of Cash Flows - All Proprietary Fund Types Notes to Financial Statements Combining and Individual Fund and Account Group Statements: . General Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 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 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 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 Eage i-i! iii-xix xx xxi xxii 1-2 3-6 7 8-11 12 13 14-15 16-37 38-39 40-43 44-47 48-59 60-61 62-63 64-68 69-70 71-72 73-77 . . . . . . . . . . . . . .. . . . . . . . . . . . . . . a w- . . . . . a ... .-. .... .-. .... .-. .... This page intentionally left blank. - - - - - - . . CITY OF WINTER SPRINGS . . COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - Continued . .' Year Ended September 30, 2001 . . . Eage II. Financial Section - Continued: . Combining and Individual Fund and Account Group Statements: . Fiduciary Fund Types: . Combining Statement of Changes in Pension Fund Net Assets 78 General Fixed Assets: . Schedule of Changes in Fixed Assets - By Function and Activity 79 . Supplementary Information: . Schedule of Revenues and Expenses - Budget and Actual - Enterprise Fund - Water and Sewer Utility Operating Account 80-81 . III. Statistical Section: . General Governmental Expenditures by Function 82-83 General Governmental Revenues by Source 84-85 . Property Tax Levies and Collections 86 . Assessed and Estimated Value of Taxable Property Net of Exemptions 87-88 a Property Tax Rates and Direct and Overlapping Governments 89 .., Special Assessment Billings and Collections 90 ... Legal Debt Margin 91 .., ... Computation of Direct and Overlapping General Obligation Debt 92 - Revenue Bond Coverage 93 ... - Demographic Statistics 94 ... Property Values and Construction 95 - Schedule of Ten Largest Taxpayers 96 - - Miscellaneous Statistical Data 97 ... ... - IV. Internal Control and Compliance Section: - Report on Compliance and on Internal Control over Financial - - Reporting Based on an Audit of Financial Statements Perforn:ed - in Accordance With Government Auditing Standards 98-99 - Sch'edule of Expenditures of State Financial Assistance 100 - - Independent Auditor's Report on Compliance and Internal - Control over Compliance Applicable to the Major State Project 101-102 Schedule of Findings and Questioned Costs - State Project 103 Management Comments 104-108 II . . . . '., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ~ .. ~ .e. - - - This page ihtentionally left blank. , . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA Ronald W. McLemore City Manager 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 December 28, 2001 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, 2001. 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 annu'al 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 table of contents, the City, Manager's and Finance Director's letter of transmittal, an organizational chart and a list ofthe City's principal elected and appointed officials; . . . , . 2. A Financial Section, including the general purpose financial statements and the combining and individual fund and account group financial statements and schedules 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 an9 miscellaneous information; - - 4. An Internal Control and Compliance Section, including the 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 does not include any c9mponent units. The City provides a full range of services including police and fire protection; utility services; the construction and maintenance of highways, streets and infrastructures; recreation?!1 activities, planning and community development and inherent support activities. .- iii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 31 ,080. 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 9% from the prior year and 67% since 1992. This increase in valuations resulted in an increased tax levy' of $318,000 over last year and $1,472,000 since 1992. Tre City's population has increased 36% from that of ten years ago. Local indicators still point to a continued trend of growth as the City works with builders and developers for both commercial and residential development. This increased growth helps the City maintain a moderate property tax rate, which was at 3.54 mills during fiscal year 2001 (tax year 2000). The economy officially entered a recession in March of 2001. Like other cities in Florida, the recession caused the City to experience a decrease in budgeted state revenues. However, the City ended the fiscal year with an addition to the General Fund fund balance of $106,000 due to a number of other revenue sources coming in greater than budget. Analysts predict an upcoming recovery/growth phase for the economy in 2002. The City is diligently monitoring its revenues and expenditures in an effort to make timely decisions if necessary. The City strives to maintain an adequate fund balance for rainy day situations such as this. The City's healthy General Fund fund balance of $3.4 million represents over 3 months worth of General Fund operating expenditures. Should budgeted revenues in the upcoming months fall short of expectations, management feels the existing fund balance will provide an appropriate level of cushion. 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. The City's linkage to a multi-lane restricted access road system (the "Greene Way"), offers its citizens the advantages of a suburban lifestyles and easy access to centralized business areas and tourist attractions throughout the metropolitan Orlando area. Addit!onatly, the Greene Way stimulates the outflow of businesses to suburban areas, enhancing the City's economic development. ... ... ... - - - - - - - - - - - - -- - - - - - - iv - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . 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: General Government Departments ~ The citizens of Winter Springs voted and approved the following referendum's during the year: · City Charter revisions went to referendum and were approved by the citizens. Most of the changes were minor and were intended to provide for a much improved organization of Charter provisions, removal of provisions outdated by changes in State and Federal Law and to clarify confusing language. The most substantive change was the increase in the length of terms for the Mayor and Commission from three to four years in line with other Federal and State election cycles and reflecting the nationwide movement to four- year elections in local governments. · The voters also approved a 1/4 mill tax for park improvements and a ten year extension of the 1 cent local option sales tax for transportation and school improvements. ~ The City updated the City's Code of Ordinances and began a program to supplement the Code with routine updates to maintain the Code in an updated status at all times. ~ A new Employee Recognition Program was initiated and service awards were presented to 68 employees for years of service ranging from 5 years to 25 years. ~ The City coordinated, in conjunction with the Supervisor of Elections, the City's. General Election in November of.2000 and the City's Special Election in September of 2001. .... .. .... - A .. .... ... .... ... ~ A State of the City address was held in April at the site of the City's new Town Center, this. event was attended by residents and business owners from throughout the City. Community Development Department - - .... - - - - - ~ During FY 2001, the City was in the last stages of negotiations for a new 230 acre "Town Center" along State Road 434 at Tuskawilla Road. The Town Center is expected to attract commercial, office, residential and public uses. The Town Center will be a public/private partnership, with the public sector provi~ing portions of the infrastructure and the private sector constructing and marketing the project. Ground breaking is expected in January of 2002. - ~ The City worked with various governmental agencies to realign a portion of the main Cross Seminole Trail from the old CSX railway right of way to a more favorable alignment within the Town Center. This realignment makes it possible to construct a separate trail section identified in the Town Center Plan as the Howell Creek Equestrian Trail. It also routes the main trail along a much more scenic route through the Town Center. The new route relocates much of the trail away from .the commercial center into the parks and greenspace systems of the Town Center. The trail system within the Town Center is made up of the main trail (the Cross Seminole County Trail), Hickory Grove Trail, Lake Jesup Trail and the Howell Creek Equestrian Trail. The trail system connects environmental, historical, and educational destinations in the Town Center greenspace system to the trail system so that trail users have access to these important destinations within the Town Center. - - - - v . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page i"ntentionally left blank. ... - - - - - . . . . . . . . . . . . . . . . . . . . MAJOR INITIATIVES - Continued ~ The Commission approved a settlement agreement with a not-for-profit company during the year. The company agreed not to locate its proposed respite center for the homeless in Winter Springs. In return the City agreed to acquire thoe property for the relocation of its Public ~ Works/Utility facility. The relocation of the Public Works/Utility facility from its current site is an important element of the City's redevelopment plan for the west side of the City. ~ The City Commission and the Wyman Fields Foundation previously entered into a partnership arrangement to acquire and rehabilitate 189 apartments/townhouse known, as the "Moss Cove Redevelopment Project". Once rehabilitated inside and out, the units will be sold as condominiums. The partnership is utiliziOng grants and funds from the Community Development Block Grant program and the State Housing Initiative Program. The project is ongoing in FY 01 with 9 units completed as of FYE 2001. ~ The City's Comprehensive Plan was overhauled during the year. The City Commission had numerous joint public meetings with the Planning Commission to expedite approval of a total overhaul of the City's Comprehensive Plan to meet State requirements. The Commission successfully compressed what is normally a 12-18 month process into 3 months to get the. new plan to the State. The City Commission, Planning Commission, staff, and the consultants working on the projects agree that the overhauled plan is a much improved plan over the one that has served the city since 1992. .- ~ ... - - - - - - - - - ~ The Community Development Department also coordinated the update of the City's Capital Improvement Program and the City's fee schedule for Community Development related fees and charges. ~ The City of Winter Springs is considered a "Tree City" and employs the services of an arborist. Our arborist participated in a number of activities during the year that helped to ensure that our City remains a "Tree City" including plantings on City property and rights of way as well as guiding citizens in planting selections and problem resolution. Fire Department - - ~ The Fire Department was awarded the National Life Safety Award. This award recognizes that no loss of life occurred in the City by fire and that our Department ensured that fire codes for prevention and inspection purposes had been uniformly applied. - - - - ~ In addition, the Fire Department was recognized for the third year by the Seminole County Public School Dividends program as one of the "Top Five" Community Resource Volunteers for the number of public education programs provided to our local schools. vi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. ... ... - - - - - - - . . . . . . . . . . . . . . . . . . . MAJOR INITIATIVES - Continued ~ The Department acquired and/or installed new equipment that improves their service level to the public and helps safeguard firefighters as follows: . · The Department purchased a state of the art thermal imaging camera for operations involving search, rescue, and locating hidden fires and personnel. This camera allows the operator to look behind solid objects using variations in temperature to detect hidden objects for the purpose of more efficient rescue and quick response in extinguishing fires. · The Department purchased a self powered portable light tower unit. This unit has been utilized by other Departments within the City for nighttime operations such as vehicular accidents, crime scenes, utility line breaks, and special events. · The Department installed devices in all breathing air apparatus that allows the user to share their air in case of a malfunction with the other users equipment. The Department also .installed a secondary bell alarm on every unit to increase 'awareness in case of low air or other problems. ' ~ The City's highly successful medical transport program, provided by the Fire Department provides excellent medical care for citizens. Since its inception on January 15, 1996 through the date of the financial statements, the Department has transported approximately 5,055 patients. The revenue collected for this service has paid for the incremental costs of providing this service and has allowed the Department to purchase state of the art vehicles and equipment. ... ... - .... - - - .... - .... - .... - - - - Police Department ~ The City of Winter Springs continues to experience the lowest crime rate of any jurisdiction in the Central Florida area. ~ During the year the Police Department utilized the portable S.M.A.R.T. Traffic Trailer purchased the prior year through transportation fees to improve traffic conditions in Winter Springs. The device measures traffic speed and volumes. It is being used to monitor the effectiveness of the traffic calming program initiated by the City in the previous year. The device has proven successful and very popular in the Community. Parks and Recreation Department -. , , ~ The $ 2.86 Million Dollar Parks Improvement Plan was completed in 2001. Bonds issued in 1999, were used for the improver:nents. The plan included 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, sidewalks with lighting, restrooms, concession stand, ballfield upgrades, landscaping, signage, handicap access, and parking improvements. During the year, two State of Florida Recreation Development Assistance Program Grants in the amount of $ 200,000 each were awarded to the city for Torcaso Park and Sunshine Park Improvements. ~ A 1/4 mill increase approved by the voters authorized the purchase of a 27 acre parcel next to Central Winds Park, for purposes of expansion of the park to construct soccer, football, baseball, and other recreation facilities. The referendum authorized the issuance of a $3.4 million General Obligation Bond to finance the acquisition and development of the property. vii . . . . . ,. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . a WI' ... .... ... ... This page intentionally left blank. .- - - - - - . . . . . . . . . . . . . . . . . . . . . . . . .... ,., a. ,., .... ... -' ... - - - - - - - - - - MAJOR INITIATIVES - Continued ~ During 2001, Pioneer Manufacturing announced that the Winter Springs Parks and Recreation Department had been selected as one of the winners of the Annual Fields of Excellent Award. The Fields of Excellence, Program recognizes outstanding athletic fields and the people who maintain them. Colleges, Universities, Minor League Facilities, Parks and Recreation Departments, and High Schools from all over the Country submitted photographs, letters of recommendation and applications forms describing their 'institutions Athletic Field Maintenance Programs. A rigorous judging process with 5 judges yielded 21 winners from 198 applications nationwide. The City of Winter Springs received a banner and certificate to commemorate their achievement. . ~ Trotwood Park Improvement project was selected and featured in the Florida Recreation and Park 2002 Facility Showcase Color Publication. >-, The City of Winter Springs "Sports Program 2001" conducted over 516 adult softball games, 979 baseball games, 1,104 Soccer Games, and 735 Basketball games. ,These games involved approximately 85,719 participants, and 102,536 spectators. ~ Additionally, the Parks and Recreation Department experienced significant involvement from our senior population. Over 732 senior activities (Bingo, Classes, Socials and Trips) with over 25,382 participants were conducted. ~ The Parks and Recreation Department continues to expand its list of programs/classes and Special Events to meet the needs of its citizens. The annual 4th of July celebration attracted' an estimated 30,000 people. Public Works and Transportation Departments ,~ The City supported a referendum that was passed by the residents of Seminole County to extend the One-Cent Sales tax for 10 more years. Voters first approved this sales tax in Seminole County ten years ago to construct badly needed transportation projects. This program will provide almost $13 million over the next 10 years for transportation related projects including road reconstruction, Town Center Collector. Roads, intersection signalization, sidewalks, dirt road paving and traffic calming. >- Finalized an interlocal agreement with Seminole County to allocate the $2.4 million remaining as the City's share of the current One Cent Sales Tax towards the first phase of the Town Center Collector Road system. ~ The Department completed the design of the Town Center roads and drainage including "Main Street", Spine Road and Hickory Grove Park Boulevard. ~ The four laning of Tuskawilla Road by Seminole County was substantially completed in September 2001 at a cost of $7.8 million. This completed the upgrading of the County and State arterial roads in the City over the last five years at a total cost of over $33 million. The four laning and beautifi,cation of Tuskawilla Road was funded from the first 10 years worth of sales tax. ' ~ Over $115,000 was invested in resurfacing existing streets. ~ Construction of a traffic signal at the Winding Hollow/Parkstone intersection has begun in partnership with the developer. . viii . . '. . . . . . . . . - . . . . . . . . .' . . . . . . . . . .. . . . . . . . . This page intentionally left blank. ... . .-. ... - - - - - - . . . . . . . . . . . . . . . .. .- .. MAJOR INITIATIVES. Continued ~ The City submitted a beautification grant application for landscaping of S.R. 434 from Tuskawilla Road to S.R. 417 as part of a "Florida Highway Beautiful" grant program. Information Services Department ~ The Information Services Department integrated the entire city data network into one domain structure during the year and completed a fiber connection to Seminole County. ~ The Department also completed installation and traininy for the Munis financial software improvement project. The Utility Billing Module and Cash Receipting Modules went live during the year. The Department worked with the software provider to refine the program to better fit our needs. . ~ The Department completed installation and initial training of the City's KIVA software improvement project. KJV A is a parcel-based land management/information software system. It will be used by the Building Department for building permits and inspections; Code Enforcement for code violation tracking and for the Cities arbor programs. Eventually every department that gives approvals at different levels prior to a building permit being issued, will be using the system to approve their component of the building permit process. In the next phase the GIS component of the KIVA system will be implemented. This will allow maps and drawings to be connected to the database so that our departments can click on a parcel map and all the corresponding data will pop up for that particular parcel. KIVA will also connect the ,City's GIS capability with the County GIS system. ... .. ... - ... - - - - ~ The Information Services Department also implemented various miscellaneous projects during the year including: email filtering, monitoring software called Mail Essentials, an email archiving tool, a computerized Help Desk software and internet tracking and filtering. - Finance and Utility Finance Departments - - - ~ The Department completed training for the Munis project, the City's new financial software. Training and set-up was conducted for the following modules: Payroll, Accounts Payable, Purchasing, Utility Billing, Cash Receipting, Fixed Asset, Budget, Business Licenses and General Ledger. As discussed in the Information Services section, the Utility Billing Module and Cash Receipting Modules went live during the year; ali other modules went live October 1, 2001. The Department has been busy working with the software provider to refine the programs to better fit our needs. - - - -' ~ The Department completed its annual audit and was awarded the Certificate of Achievement for Excellence in Financial Reporting for its annual financial report for the fiscal year ended September 30, 2000. ~ The City revised its Investment Policy and prepared a Retirement Investment Policy for the City's retirement funds in accordance with the new Florida Statutes guidelines. Staff, the City Commission and the Board of Pension Trustees underwent mandatory investment training also in accordance with the new guidelines. ix . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . This page. intentionally left blank. ... . .... - .... - .... - - . . . . . . . . . . . . . . . . . . MAJOR INITIATIVES - Continued ~ The Finance Department was involved in a number of bond issues during the year as follows: · Water. and Sewer Refunding Revenue Bonds Series 2000 - the City issued approximately $7 million in Water & Sewer bonds in order to refinance at a lower interest rate the outstanding Water & Sewer Bonds Series 1997 as well as obtain new money for Town Center water and sewer infrastructure costs. · Special Assessment Revenue Bonds, Series 2001 (Tuscawilla Improvement Area) - the City issued $2.265 million in Special Assessment bonds to finance improvements to the special assessment district. · Water and Sewer Refunding Revenue Bonds Series 2001 - the City issued approximately $6 million in Water & Sewer bonds to refinance the Water and Sewer's outstanding 1991 bonds at a lower interest rate. The utility will save approximately $60,000 a year in interest expense due to the refinancing. Utility Department ~ The Department completed a lift station telemetry system, which will provide an improved response time to sanitary sewer problems and malfunctions and reduce overtime. ~ The Department also completed a conversion from gas chlorine to liquid chlorine at Water Treatment Plant #2 to improve the safety of employees and surrounding residents. ... ... - - - - - - ~ Water conservation required that the Department implement irrigation restrictions limiting irrigation to two days per week. - ~ A number of utility design and construction projects were underway during the year as follows: · The Utility Department is in the process of constructing a 12" water main in conjunction with the Tuskawilla Road improvements that will provide a secondary interconnection between the East and West water distribution systems. · The Department- completed the western water main loop from Florida Avenue to the Wildwood subdivision during the year. · Design was completed of the water and sewer infrastructure to serve the Town Center and construction began on the force main to serve the eastern half. · The design of the southern water main interconnect was finalized which will provide a third East/West interconnection between Oak Forest and Seville Chase. · Potable Well #4 was designed and permitted. - - - ~ A rate study of water, sewer, reclaimed, and stormwater fees and charges is underway and will be finished in FY 2002. The study will determine if current rates are sufficient to meet projected operational and capital needs. ~ The City entered into a contract to acquire property for the relocation and consolidation of the Utility and Public Works Departments. The new public works facility will allow the city to relocate the badly out-dated public works facility located next to Torcaso Park to the industrial park located on the north side of State Road 419. Relocation of the facility is an important part of the City's west area revitalization plan. Construction expected to start at a later date. ~ During the year, the Utility purchased a vacuum truck to clean sanitary and.stormwater piping systems. x . . . . . . . . . . . . . . . . . . . . . . . . . . ... .... ... ... ... .... This page intentionally left blank. . . ... ., ... .... - .... - - - - - - - - . . . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . ... .... ... - - - MAJOR INITIATIVES. Continued , , ~ During the year the Utility issued approximately $7 million in Water and Sewer Refunding Revenue Bonds, Series 2000, to fund system projects such as the Town Center infrastructure and refund the'outstanding Water and Sewer Revenue Bonds 1997. In addition, the Utility refunded its outstanding Water and Sewer Refunding Revenue Bonds, Series 1991, with the Water and Sewer Refunding Revenue Bonds, Series 2001, to take advantage of savings resulting from the drop in interest rates. Special Assessment Districts ~ The City won a Florida Supreme Court decision overturning the local court's ruling of the bond validation hearing related to the Tuscawilla Lighting and Beautification District (TLBD). ~ The City issued bonds in the amount of $2.265 million for the cons~ruction of the TLBD improvements. ~ The City began construction' in May of the TLBD $1.7 million improvement project including entranceways, 'fountains, landscaping, irrigation, and street signage. The completion date for the project is projected to be May 2002. ~ The City substantially completed the construction of 6,000 feet of brick wall and entryway enhancements for the Oak Forest subdivision. The final construction costs finished under budget. ONGOING AND FUTURE PROJECTS The City is constantly working on many projects to improve City services and facilities. Listed below are some projects, which the City is either working on or are planned: Community Development Department ~ Architects, Engineers, Planners, and City Officials are working overtime designing and permitting streets, water, sewer, arid stormwater facilities in order to meet developer's desires to get construction underway as' quickly as possible in the Town Center. ~ The Moss Cove Redevelopment Project, as discussed above, will continue throughout FY 2002. Funds returned to the City after the renovations are complete can again be used for future redevelopment projects. ~ The Community Development Department plans to develop an annexation program for the City and rewrite zoning ordinances and building regulations in the upcoming year. ~ The Building Division will continue to strive to improve its processes over enforcement of unlicensed contractors and permit violations in conjunction with the Code Enforcement , Division. ~ Our City Arborist has a number of projects planned in the upcoming year including a tree giveaway during the National Arbor Day Celebration, plantings along various rights of way and a landscape beautification of Winter Springs Boulevard. xi ,~\NTEr;> 0' ' /---- ~ / . ~ ~-- . -----...'^1. ~.I ~'\_,,~ \.. /1 }-' ' ' " _: J ~- \ G U \ 'S---cl (/) '\~Y' '~(OR\Ol>-' . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . .. .... This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . ONGOING AND FUTURE PROJECTS - Continued Fire Department ~ The Department will begin accreditation through the International Fire Department Accreditation program. This program involves achieving a list of core competencies and demonstrating a process of quality improvements. - ., . . . . . . . . . . . . . . . . . . . . ~ Equipment purchases planned for the upcoming year consist of the following: · The Department will purchase firefighter wellness and fitness equipment with Federal grant funds in the amount of $15,000. This equipment will strengthen the endurance and cardiovascular output of personnel. · The Department, will begin a 5 year program of breathing air bottle replacement from bottles that were constructed of aluminum to bottles that are constructed with carbon fibers. This will minimize by 11.5Ibs. the amount each firefighter has to carry which will reduce the level of physical stress on the firefighter. ' · A hose tester and washer purchase is planned for purposes of testing and maintaining the fire hose. Police Department ~ The Police Department plans to equip the department for unusual occurrences that require immediate response to active shooter situations experienced at some schools recently across our nation. The equipment also prepares the departme~t for potential terrorists activities, domestic violence hostage situations and similar events. 'The revenue source for this equipment is Police Impact Fees. ~ During the year, the Police Department expects to complete the Florida State Accreditation process. Parks and Recreation Department ~ The Parks and Recreation Department will complete the lighting of 4 Soccer Fields at Central Winds Park that will meet the need of night usage at an estimated cost of $ 350,000. ~ Torcaso Park was awarded a Seminole County CDBG Grant for Park Expansion to include a practice Football/Soccer Field, a Splash Playground, Park.ing and Walkways in the amount of $485,000. ... ... - .... - - - - ~ A Central Winds Park Expansion AD Hoc Advisory Committee was established by the City Commission to recommend recreation improvements on the 27 acre site 'acquired adjacent to Central Winds Park. Park improvements will begin in 2002. ' ~ New ball field maintenance equipment to continue the City's participation in the "Fields of Excellence Awards Program" was purchased including a new 5 gang Bermuda Reel Mower, Work Cart with Sprayer, and Sand Pro at a total cost of $ 71,000. - - ~ The Department has plans to apply for a number of grants for its parks including grants from the State of Florida Recreational Development Assistance Program and Land and Water Conservation Fund Program and Seminole County CDBG Grants. - - - - - - - - - - - - - xii - - - . . . . . . . . . . . . . . . . .. . . . . . . . . . . . '. . . . . . . . . . . . . . . This page intentionally ieft blank. . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . ... - ... - - - - - - - - - - - - - - - - - - - - - ONGOING AND FUTURE PROJECTS. Continued Public Works and Transportation Departments ~ The City plans to complete the construction of Hickory Park Grove Boulevard and Main Street (Tuskawilla .Road) as the first phase of the Town Center Collector Roads. ~ Plans are underway to complete the design and begin construction of Fisher Road, a collector road in the Ranchlands and complete .traffic signal installations at Winding Hollow/Parkstone, Vistawilla Drive & S.R. 434, Central Winds Park & S.R. 434, and S.R. 419 & Edgemon Avenue. ~ The City intends on continuing its efforts with both the pavement management and traffic calming programs as well as improve the landscape maintenance standards in the rights of way. Information Services Department ~ The Information Services Department plans fiber connectivity projects during the upcoming year. Specifically, the department plan$ fiber connectivity to the City's Central Winds Park to replace the current ISDN connection. This will supply both phone and data connectivity ,to City Hall and to the' rest of the City. Fiber connectivity is also planned from Fire Station 26 and the Utility Plant on Northern Way to City Hall utilizing County' Fiber. This will give those two locations both data and phone connectivity to City Hall and to the rest of the City. ~ The Department plans to complete the KIVA land management software project discussed above. ~ The Department will also update the City's telephone system at the Public Safety Building and City Hall.. The department will be' able to furnish better telephone usage reports to the departments. The telephone system will also be replaced at Central Winds Park. Finance and Utility Finance Departments ~ The Department anticipates participation in additional bond issues as the City takes advantage of low interest rates in conjunction with refinancings and an issue associated with the purchase of property to expand the City's main park, Central Winds Park. ~ The City is working with lending institutions to negotiate lower fees and higher interest, earnings as it restructures its accounts in an effort to increase efficiency and our level of technology within the Department. Utilitv Department ~ The Utility Department plans to complete the: · Construction of the first phase of the water and sewer extensions needed to serve the Town Center. · Tuskawilla Road water main interconnection and southern water main interconnection. · Construction of Well #4 at Water Treatment Plant #1 fulfilling the water supply needs at this facility through 2020. ~ To continue conversion of gas chlorine to liquid chlorine at Water Treatment Plant #3. This is the 2nd conversion of the 5 facilities housing gas chlorine. ' xiii . . . . . . . . . . . . . . . . . . . . . . . . . - This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ONGOING AND FUTURE PROJECTS. Continued ~ To start design of the new Utility and Public Works Departments facility. ~ To implement the recommendations of the rate study of the water, sewer, reclaimed, and stormwater fees and charges as soon as they are adopted by the City Commission. ~ To refinance the Water and Sewer Refunding Revenue Bonds, Series 1992 to take advantage of lower interest rates. Soecial Assessment Districts ~ The City intends to complete the construction of the $1.7 million TLBD improvement project within budget and to finalize the construction of the wall and entryway enhancements for the Oak Forest Subdivision. 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 t/:1e 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. As a recipient of federal, state and local financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal .control structure is subject to periodic evaluation 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. - - - - - - - - - - - - - - - - - - - xiv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . .. . . . . . . . This page intentionally left blank. ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . FINANCIAL INFORMATION. Continued 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, 2001 and 2000. Revenues and Amount of Percent of Other Financing 2001 Percent 2000 Increase Increase Sources Amount of Total Amount (Decrease) (Decrease) Taxes $ 7,791,760 34.4% $ 7,322,542 $ 469,218 6.4% Licenses and Permits 758,367 3.3 931,588 (173,221 ) (18.6) Intergovernmental 3,430,537 15.1 3,261,472 169,065 5.2 Charges for Services 825,621 3.6 1,073,902 (248,281 ) (23.1 ) Fines 415,896 1.8 298,357 117,539 39.4 Investment Income 597,612 2.6 597,515 97 Miscellaneous 131,010 .6 13,676 117,334 857.9 Operating transfers In 6,491,257 28.6 5,752,346 738,911 12.8 Proceeds from debt issuance 2,240,922 -1M 1,619.500 621.422 38.4 Total $22,682,982 100% $20,870,898 $1 ,812,084 The largest dollar value increase in reoccurring revenues came from "Taxes". Revenues from taxes. - - - - - - increased 6.4%, or $469,000 due to an inc"rease in Ad Valorem revenues and telecommunication taxes. Ad Valorem revenues rose due to higher assessed values and new construCtion even as the City reduced the property tax millage rate from 3.5495 to 3.54 mills. Telecommunication revenues increased over the' prior year due to the, full year effect of the increase in the telecommunication tax base. The telecommunication tax rate was lowered during the prior year; however, the base was increased to include telecommunication service versus telephone service. - - The overall increase in "Intergovernmental" revenues over the prior year can be attributed to an increase in monies received from the state recreation grants. - - The "Fines" category experienced an increase over the prior year as law enforcement continues their efforts to enforce safety throughout our City. - - - The increase in "Miscellaneous Revenue" over the prior year -resulted from donations received and placed in'the Recreation Acquisition Special Revenue Fund. - The largest dollar value decrease in reoccurring revenues came from the "Charges for Services" category. . Specifically, the Solid Waste Special Revenue Fund experienced a decrease due to adjustments in the amount billed by the provider based on updated assessment rolls reflecting new construction. - -- xv . . . . . . . .' ,. . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . This page intentionally left blank. ... .. . . . . . .' . . . . . . . . . . . . . . . ... - - - - - - - ..... - - - - - - - - - FINANCIAL INFORMATION. Continued A decrease in revenues came from "Licenses and Permits". Building permit fees and transportation impact fees decreased between the two-year period reflecting a decreasing rate of activity over the prior year. Once the Town Center is underway, revenues should pick-up. The largest dollar value increase in non-reoccurring revenues came from "Operating Transfers In". This category reflects new transfers related to the Oak Forest debt service and the Information Systems debt service as well as increases from the Public Service Tax and Franchise Fee funds. The decrease in the line item, "Proceeds From Debt Issuance", another non-reoccurring revenue source, is due to the issuance of a $1.6 million note in FY 00 for the Oak Forest Wall, a medical transport vehicle and information service software/hardware versus the issuance of a $2.2 million bond for the Tuscawilla Lighting and Beautification Special Assessment District in FY 01. The following schedule presents a summary of general fund, special revenue fund, capital projects fund and debt service fund expenditures for the fiscal years ended September 30, 2001 and 2000: Amou nt of Percent of Expenditures and 2001 Percent 2000 Increase Increase Other FinancinQ Uses . Amount of Total Amount (Decrease) (Decrease) General Government $ 3,483,821 16.4% $ 3,039,087 $ 444,734 14.6% Public Safety 6,407,678 30.1 5,807,995 599,683 ' 10.3 Physical Environment 1,923,892 9.1 1,762,780 ,161,112 9.1 Culture & Recreation 1,301,005 6.1 1,200,702 100,303 8.4 Capital Outlay 1,111,778 5.2 4,347,463 (3,235,685) (74.4 ) Debt Service 1,477,381 6.9 978,819 498,562 50.9 Operating Transfers Out 5,573.948 26.2 4,999,335 574,613 11.5 Total $21,279.503 100.0% $22,136,181 $ (856,678) The largest dollar value increase in reoccurring expenditures was due to "Public Safety". Public Safety expenditures increased 10% over the 'prior year mainly. due to increases in personnel costs such as salaries, health and workman's compensation for both the Police and Fire Departments. "General Government" expenditures increased 14% over the prior year due in part to professional fees related to Community Development and legal services necessary to ensure, the City is handling its various matters in accordance with laws and regulations. In addition, general government expenditures include the cost of meters, the volume of which increased as a part of the meter replacement program.' Both the cost of the Utility Finance and Meter Services departments are reimbursed to the General Fund by the Enterprise Fund. "Physical Environment" expenditures increased 9% or $161,000 over the prior fiscal year as the City makes continued planned transportation related improvements to its streets and drainage systems paid by impact fees and the Local Option Gas Tax. "Culture and Recreation" expenditures increased 8% over the prior year. The Parks and Recreation Department has developed a number of partnerships with various leagues. Expenses related to the partnerships are shown as expenditures in the department; whereas, the partnership revenue flows to the General Fund revenues section. XVl . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . '. . . . . - - - - - - This page intentionally left blank. - - - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . FINANCIAL INFORMATION. Continued The largest dollar value increase in non-reoccurring revenues came from "Operating Transfers Out". This category reflects new transfers related to the Oak Forest debt service and the Information Systems debt service as well as increases from the Public Service Tax and Franchise Fee funds. The increase seen in FY 2001 Debt Service is due in part to the effect of a full years worth of payments associated with 1999 bond as well as other increases in the debt service for outstanding debt in general. The largest dollar value decrease'in non-recurring expenditures was due to "Capital Outlay". For the most part, the variations in capital outlay expenditures are due to the timing of planned projects. For instance, during FY 1999, bonds were issued to finance various improvement projects in the City and during FY 2000 and FY 2001 the City incurred expenditures related to this purpose. General Fund Balance The fund balance of the general fund at September 3d, 2001 is $3,429,563, which represents an increase of $106,334 or 3.2% over 2000. One of the goals of the City over the next few fiscal years is to continue to increase the fund balance to provide enhanced stability for its citizens. Enterprise Operations The City's enterprise operations are comprised of the City's water and sewer utility. Water and sewer revenues decreased 1.2% to $5,604,667, while the number of customers increased by 1.8% to 12,136. Drought restrictions in place during 2001 limited irrigation to 2 days a week. As in prior years, the water/sewer utility made payments to the general fund (included in operating transfers in) for those staff salaries and related benefits that are budgeted and expended in the gen.eral fund for services either directly or indirectly provided on behalf of the utility. Cash Management - - - - ... - - - - - - During the year, the City primarily invested its temporarily idle cash in U.S. Government securities, fixed income mutual funds, Federal Home Loan Bank bonds and through a master repurchase agreement with the City's bank, Sank of America. As of September 30, 2001, the City had investments \oI{ith a market value totaling over $8,453,272 million. Total inv~stment income on all funds except the pension trust funds was $1,169,930 and the pension trust funds had a net investment loss of $(403,076). Debt Administration - At year end, the City had a number of debt issues outstanding. These issues, net of applicable unamortized discounts, included $18,643,970 of improvement revenue bonds and $1,351,859 of capital improvement revenue notes included in the General Long-Term Debt Group of Accounts, and $26,623,174 of water and sewer revenue bonds. During the fiscal year the City issued Special Assessment Bonds in the amount of $2,265,000 to finance the acquisition and construction of improvements in the Tuscawilla Lighting and Beautification District. These bonds will be repaid from assessments levied on property within the assessed area. -. - - - - - - - -- - xvii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. ... - - - - - - - - - . . . . . . . . . . . . . . . . . . . . . . . . . FINANCIAL INFORMATION. Continued A capital lease incurred during fiscal year 1999 for a medical transport vehicle has an ,outstanding balance of $70,979 at September 30,2001. During the 2001 fiscal year the City also issued Water and Sewer Refunding Revenue Bonds, Series 2000 and Series 2001 in the amounts of $6,969,191 and $6,065,000, respectively., The Series 2000 bonds were issued to advance refund the Water and Sewer Revenue Bonds, Series 1997 and to finance the acquisition and construction of various capital improvements to the City's combined water and sewer system. The Series 2001 bonds were issued to currentlyrefund all of the City's outstanding Water and Refunding Revenue Bonds, Series 1991 saving the City $60,000 a year in annual debt service. Pension Trust Funds The City maintains a single employer defined benefit pension plan, which covers virtually all full time employees of the City. Further details concerning pension expense, vested benefits and actuarial assumptions are included in the notes to financial statements. At September 30, 2001, the pension funds had net assets of $5,272,492. ' Risk Manaaement 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. OTHER INFORMATION 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, McDirmit Davis Puckett & Company, LLC, have conducted the audit and issued their report, which can be found in the financial section of this report. ' Certificate of Achievement - - - The Government Finance Officers Association of the United State and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs, Florida for its comprehensive annual financial report for the year ended September 30, 2000. The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. - - - - - - - - - - - - - - - - xviii ~,\NT~r;> "...~...:: 0'1==,-::__" ~ I~ ~-""'f'i~ )7_ \ }-/ -. (;) -U I ,L~___ (/) ~~"".. . l"'''rpo~'', 1959 "0 , '~(OR\Or>-' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,. . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . OTHER INFORMATION. Continued A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report meets the Certificate of Achievement for Excellence in Financial Reporting program's requirements, and we are submitting it to the Government Finance Officers Association to determine eligibility for a certificate. AcknowledQements 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 responsible and progressive manner. Respectfully submitted, ~uM /J Jl IJ;:'",.J) Ronald W. McLemore City Manager . . '~ -C '--::\- ~ 9- Louise C. Frangoul, CPA a Finance, Director ... ... - .... - - - - - - - - - - - - - - - xix ..J\NTEf.? 'i /------..:...... ~_<:t. \ ~{~._------,!1 "',~ >..!~'::\_",- \. \-z. t: '~:~\ \0 U " ' :0--,-\ / (/) , \ ,.,J....., , I "".,,-por=~ '\ I' ~y' '~(OR\Or>--' . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. ... ~ ... .... . . . . . . . . .' . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS ELECTED OFFICIALS MAYOR DEPUTY-MA YORlCOMMISSIONER. COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER APPOINTED OFFICIALS CITY MANAGER CITY CLERK FINANCE DIRECTOR INFORMATION SERVICES GENERAL SERVICES POLICE CHIEF FIRE CHIEF UTILITY/PUBLIC WORKS DIRECTOR COMMUNITY DEVELOPMENT DIRECTOR PARKS AND RECREATION DIRECTOR ... ., . . ... .... LEGAL COUNSEL Anthony Garganese Brown, Ward, Salzman & Weiss, P.A. . - - - - - - - - - FINANCIAL ADVISOR David Moore Public Financial Management - - - - - - - - - - - AUDITORS McDirmit Davis Puckett & Company, LLC - - - - xx - Paul P. Partyka Cindy Gennell Robert S. Miller Michael S. Blake Edward Martinez, Jr. David McLeod Ronald McLemore . Andrea Lorenzo-Luaces Louise Frangoul Joanne Dalka Gene De Marie Daniel Kerr Timothy Lallathin Kipton Lockcuff Charles C. Carrington Chuck Pula City of Winter Springs Organizational Chart Citizens of . Winter Springs I I II Advisory Boards I' [ Ii II ! . I I City Attorney City Manager [----..-'----'--1 ! City Clerk I I Infonnalion Services I Finance Director Community Development! Fire Chief Police Chief Public Works/Utility Parks & Recreation General Services Director I Director Director I, Director I I I ! ,I . Administration . Administration .Administration . Administration . Administration . Administration . Administration , . Accounting .Comp Plannning - F ire/Restue - Records -Stormwater -Civic/Senior -HR -Debt Mgt. -Land Mgt. .Fire Prevention -Communications -Transportation -Parks!Field Mnt. -Risk Mgt -Treasury Mgt. -Code Enforcement-EMS -Patrol - Engmeering . '- Athletics -Purchasing -Meter Svc, -Bldg Permit & Insp. - Investigations -Water Mgt. -Rec. Programs -Budgeting - Youth Services Water -Concession Svc, Wastewater *The City Manilger 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 Mal)ager. .. *The City Attorney is appointed by the Mayor with ratification of the City' Commission and works under the direction of the City Commission. * Advisory Boards are appointed by the Mayor and City Commission and work under the direction of the City Commission. . . . . . . . . . . . '. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, 2000 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 fim.ncial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. - c1~de~ ;~e:::~ - - - - - - - - - - - - ~\NTEr;> O;C~-=~~ ~ 'V'.~ \ \~' }-! ' ' ~"'-~ 4- _, . Cl U\ l~ (/) ~) ~ . . . . . . . . . . . .. . . ,. . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . This page .intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . FINANCIAL SECTION This section contains the following subsections: . Independent Auditor's Report . General Purpose Financial Statements . Combining Statements . Supplementary Information . .' . . . . '. . . . . . '. - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . ... .... . . ... ., . ... .... ... .... ~ IVICDIRlvlIT DAVIS' PlJCKETT INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the accompanying general purpose financial statE?ments of the City of Winter Springs, Florida, as of and for the year ended September 30, 2001, as listed in the 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 perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material' misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides, a reasonable basis for our opinion. In our opinion the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Winter Springs; Florida, as of September 30, 2001, and the results of its operations and the cash flows of its proprietary fund types and the changes in pension fund net assets for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated December 28, 2001 on our consideration of the City of Winter Springs, Florida's internal control over financial reporting and our tests of its compliance with certain 'provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. MCDIRMIT DAVIS PUCKETT & COMPANY, LLC C E R T I FIE D PUB LI CAe C 0 U N TAN T SAN 0 CON S U L TAN T S 605 E, ROBINSON STREET, SUITE 635' ORLANDO, FLORIDA 32801 TELEPHONE 407-843-5406 . FAX 407-649-9339 . EMAIL: INFO@MDPCPA,COM MEMBERS: P1UV,\TE COMPANIES PRACTICE SECTION < AMERiCAN INSTlTIITE OF CERTIFIED PuBLIC ACCOUNTANTS' FLORIDA INSTlTlJTE OF CERTIFIED PUBLIC ACCOUNTANTS 1 Our audit was' made for the purpos~ of forming an opinion on ,the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements, and supplementary information listed in the accompanying 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 of Winter Springs, Florida. The accompanying schedule of expenditures of state financial assistance is presented for purposes of additional analysis as required by Section 215.97, Florida Statutes, and is not a required part of the -general purpose financial statements of the City of Winter Springs, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole, ' The information listed in the Statistical Section is present13d for purposes of additional analysis and is not a required part of the general purpose Jinancial statements. Such information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it. ~~~f~/LL~ McDIRMIT DAVIS PUCKETT & COMPANY, LLC December 28,2001 2 . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as. an introduction to the detailed statements that follow in subsequent sections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . ,. . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINED BALANCE SHEET ALL .FUND TYPES AND ACCOUNT GROUPS September 30, 2001 Governmental Fund Types Special Debt General Revenue Service Assets: Cash and cash equivalents $ 554,041 $ 4,933,495 $ 722,760 Investments 2,154,791 Receivables, net 273,034 Inventories - at cost .5,726 Due from other governments 160,550 Due from ,other funds 2,781,591 1,933,809 35,938 Prepaid costs 162,956 . 9,346 , Restricted assets: Cash and cash equivalents 106,410 Investments Property, plant and equipmer:lt , Less: accumulated depreciation Construction in progress Unamortized bond issuance costs . Mortgage receivable, long-term Amount available in debt service funds , , Amount to be provided for retirement of general long-term debt. Total Assets $ 5,926,065 $ 7,140,338 $ 768,044 The accompanying Notes to Financial Statements are an integral part of these statements. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .... . . . ... .... . . - - Governmental Proprietary Fiduciary Fund Types Fund Type Fund Type . Account Groups General General Totals Capital Fixed Long-Term (Memorandum Projects Enterprise Trust Assets Debt Only) $ 4,629,029 $ 2,538,386 $ 63,353 $ $ '$ 13,441,064 5,203,674 7,358,465 10,274 760,850 5,465 1,049,623 5,726 .160,550 459,254 848,915 6,059,507 30;250 202,552 7,470,732 7,577,142 1,094,807 1,094,807 41,310,326 27,589,416 68,899,742 (12,659,803) (12,659,803) 396,868 396,868 503,394 503,394 803,645 803,645 767,944 767,944 20,152,694 20,152,694 $ 5,932,452 $ 42,264,475 $ 5,272,492 $ 27,589,416 $ 20,920,638 $ 115,813,920 (Continued) 4 . CITY OF WINTER SPRINGS, FLORIDA . . COMBINED BALANCE SHEET . ALL FUND TYPES AND ACCOUNT GROUPS . September 30, 2001 . . Governmental FundTypes . . Special Debt Capital . General Revenue Service Projects . Liabilities and Fund Equity: . Liabilities: . Accounts payable $ 151,793 $ 262,837 $ $ , 200,182 . R,etainage payable . Accrued liabilities 407,231 1,220 . Due to other funds 1,831,068 2,948,620 100 561,512 Current liabilities (payable fr9m restricted . assets): . Customer deposits 106,410 Accrued interest . Revenue' bonds payable . Obligation under utility agreement Accrued compensated absences . Bonds payable . Obligations under capital leases Notes payable . Obligation under utility agreement, less . portion payable from restricted assets . Total Liabilities 2,496,502 3,212,677 100 ,?61,694 Fund equity: ' . Contributed capital . Investment in general fixed assets Retained earnings: . Reserved for renewal and replacement . Reserved for capital improvements Unreserved . Fund balances: . Reserved: Inventories' 5,726 . Prepaid costs 162,956 ' . Encumbrances 48,480 334,911 38,993 Debt service 767,944 . Employee's pension benefits' . Mortgage receivable, long-term 803,645 . Capital projects 4,328,120 Unreserved 3,212,401 3,592,750 . Total Fund Equity and Other Credits 3,429,563 3,927,661 767,944 5,170,758 . Total Liabilities, Fund Equity and Other Credits $ 5,926,065 $ 7,140,338 $ 768,044 $ 5,932,452 . . . The ,accompanying Notes to Financial Statements are an integral part of these statements. . . 5 . . . . . . . . Proprietary Fiduciary . Fund Type Fund Type Account Groups General General Totals . Fixed Long-Term (Memorandum . Enterprise Trust Assets Debt ' Only) . . . $ 110,877 $ $ $ $ 725,689 6,741 6,741 . 21,875 430,326, . 718,207 6,059,507 . . 517,338, 623,748 332,722 332,722 . 650,000 650,000 . 72,000 72,000 . 140,442 853,829 994,271 25,973,174 18,643,970 44,617,144 . 70,980 70,980 . 1,351,859 1,351,859 . 146,000 146,000 . 28,689,376 20,920,638 56,080,987 . 9,185,403 9,185,403 . 27,589,416 27,589,416 ... 202,615 202,615 .., . 458,532 458,532 3,728,549 3,728,549 - .... ... - 5,726 - - 162,956 - 422,384 - 767,944 - - 5,272,492 5,272,492 -- 803,645 - -- 4,328,120 - 6,805,151 13,575,099 5,272,492 27,589,416 59,732,933 - $ 42,264,475 $ 5,272,492 $ 27,589,416 $ 20,920,638 $ 115,813,920 - - 6 . . . . . . . . . . . . . . . . . . . . . . .. ,. . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . CITY QF WINTER SPRINGS, FLORIDA . COMBINED STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN FUND BALANCES . ALL GOVERNMENTAL FUND TYPES . . For The Year Ended September 30, .2001 . . Governmental Fund Types Totals . Special. Debt Capital (Memorandum . General Revenue Service Projects Only) . Revenues: Taxes and special assessments $ 3,959,325 $ 3,768,902 $ $ 63,532 $ 7,791,759 . Licenses and permits 541,993 216,374 758,367 . . Intergovernmental revenues 3,139,702 290,835 3,430,537 Charges for services 250,132 575,489 825,621 . . Fines and forfeitures 314,492 101,404 415,896 . Investment income 220,427 179,861 13,530 183,794 597,612 Miscellaneous 53,291 77,719 131,010 . Total revenues 8,479,362 5,210,584 13,530 247,326 13,950,802 . Expenditures: . Current: . General government 3,064,249 419,572 3,483,821 . Public safety 6,308,135 99,543 6,407,678, Physical environment 1,301,831 622,061 1,923,892 . Culture and recreation' 1,300,986 19 1,301,005 . Capital outlay 1,111,782 1,111,782 Debt service: . Principal retirement . 51,329 602,370' 653,699 . Interest and fiscal charges 10,159 724,847 735,006 Issuance costs 88,676 88,676 . Total expenditures 11,975,201 1,202,683 1,327,217 1,200,458 15,705,559 , . Excess (Deficiency) of Revenues . Over Expenditures (3,495,839) 4,007,901 (1,313,687) , (953, 132) (1,754,757) . other Financing Sources (Uses) . Operating transfers in 3,719,262' 1,286,709 1,379,276 106,010 6,491,257 . Operating transfers out (117,089) (5,159,442) (297,417) (5,573,948) Bond proceeds 2,240,922 2,240,922 . Net other financing sources (us'es) 3,602,173 (3,872,733) 1,379,276 2,049,515 3,158,231 . Excess (Deficiency) of Revenues . and Other Sources Over . Expenditures and Other Uses 106,334 135,168 65,589 1,096,383 1,403,474 . Fund Balances. Beginning of Year . As previously stated 3,323,229 3,792,493 702,355 3,352,053 11,170,130 . Prior period adjustment 722,322 722,322 As restated 3,323,229 3,792,493 702,355 4,074,375 11,892,452 . Fund Balances - End of Year $ 3,429,563 $ 3,927,661 $ 767,944 $ 5,170,758 $ 13,295,926 . . .' The accompanying Notes to Financial Statements are an integral part of these statements, . 7 ... ., . CITY OF WINTER SPRINGS, FLORIDA' . . COMBINED STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN FUND BALANCES . BUD,GET AND ACTUAL . _ ALL GOVERNMENTAL FUND TYPES . For The, Year Ended September 30, 2001' . General Fund . Variance . Favorable . Budget Actual (U nfavorable) . Revenues: . Taxes and special assessments, $ 3,992,262 $ 3,959,325 $ (32,937) . Licenses and permits 550,000 541,993 (8,007) Intergovernmental revenues 3,165,081 3,139,702 (25,379) . Charges for services 253,917 250,1'32 (3,785) . Fines and forfeitures 200,000 '314,492 ,114,492 Investment income 200,000 220,427 20,427 . Miscellaneous 155,716 53',291 (102,425) . Total revenues 8,516,976 8,479,362 (37,614) . Expenditures: . Current: . ' General government 3,297,571 3,064,249 233,322 Public safety 6,358,063 6,308,135 49,928 . Physical environment 1,341,152 1,301,831 39,321 . Culture and recreation 1 ,331 ,417 1,300,986 ~O ,431 Capital outlay . Debt service: . Principal retirement Interest and fiscal charges . Issuance costs . Total expenditures 12,328,203 11,975,201 353,002 . Excess (Deficiency) of Revenues . Over Expenditures (3,811,227) (3,495,839) 315,388 . other Financing Sources {Uses) . Operating transfers in 2,908,915 3,719,262 810,347 . Operating transfers out (30,422) (117,089) (86,667) Bond proceeds . Net other financing so'urces (uses) 2,878,493 3,602,173 723,680 . Excess (Deficiency) of Revenues . and Other Sources Over . Expenditu.res and Other Uses (932,734) 106,334 1,039,068 . Fund Balances - Beginning of Year . As previously stated 3,323,229 3,323,229 Prior period adjustment . As restated 3,323,229 3,323,229 . Fund Balances - End of Year $ 2,390,495 $ 3,429,563 $ 1,039,068 . . The accompanying Notes to Financial Statements are an integral, part of these statements. . 8 . . . . . . . . . Special Revenue Funds Debt Service Funds . Variance Variance Favorable Favorable . Budget Actual (Unfavorable) Budget Actual (Unfavorable) . . $ 3,301,717 $ 3,768,902 $ 467,185 $ $ $ . 350,000 216,374 (133,626) . 443,500 290,835 (152,665) 2,065,444 1,932,614 (132,830) . 55,000 101,404 46,404 . 56,900 179,8'61 122,961 6,500 13,530 7,030 77,719 77,719 . 6,272,561 6,567,709 295,148 6,500 13,530 7,030 . . . 1,861,217 1,776,697 84,520 145,175 99,543 45,632 . 2,556,075 622,061 1,934,014 . 100 19 81 . . 25,271 51,329 (26,058) 539,361 602,370 (63,009) 6,157 10,159 (4,002) 864,995 724,847 140,148 . 1,571 1,571 . 4,595,566 2,559,808 2,035,758 1,404,356 1,327,217 77,139 . . 1,676,995 4,007,901 2,330,906 (1,397,856) (1,313,687) 84,169 . . 1,1 qO,422 1,286,709 156,287 1,397,656 1,379,276 (18,380) . (4,403,275) (5,159,442) (756,167) . (3,272,853) (3,872,733) (599,880) 1,397,656 1,379,276 (18,380) . . . (1, ,595,858) 135,168 1,731,026 (200) 65,589 65,789 . .' 3,792,493 3,792,493 702,355 702,355 . 3,792,493 3,792,493 702,355 702,355 . $ $ 3,927,661 $ 1,731,026 $ 70.2,155 $ 767,944 $ 65,789 . 2,196,635 . (Continued) . 9 . . CITY OF. WINTER SPRINGS, FLORIDA . . COMBINED STATEMENT OF REVENUES. EXPENDITURES AND . CHANGES IN FUND BALANCES . BUDGET AND ACTUAL . ALL ,GOVERNMENTAL FUND TYPES . 'For The Year Ended September 30, 2001 . Capital Projects Funds . Variance . Favorable' . Budget Actual (Unfavorable) . Revenues: . Taxes and spe~ial assessments $ 225,547 $ 63,532 $ (162,015) . Licenses and permits Intergovernmental revenues . Charges for services . Fines and forfeitures Investment income 117,000 183,794 66,794 . Miscellaneous '. Total revenues 342,547 247,326 (95,221 ) . Expenditures: . Current: , General government . Public safety . Physical environment . Culture and recreation Capital outlay .6,078,366 1,111,782 4.966,584 . Debt service: . principal retirement Interest and fiscal charges . Issuance costs , 100,000 88,676 11,324 . Total expenditures 6,178,366 1,200,458 . 4,977,908 . Excess (Deficiency) of Revenues . Over Expenditures (5,835,819) (953,132) 4,882,687 . Other Financillg Sources (Uses) . Operating transfers in 782,000 ,106,010 (675,990) . Operating transfers out (307,369) (297,4H) 9,952 Bond proceeds 2,500,000 2,240,922 (259,078) . Net other financing sources (uses) 2,974,631 2,049,515 (925,116) . Excess (Deficiency) 'of Revenues . and Other Sources Over . Expenditures and Other Uses (2,861,188) 1,096,383 3,957,571 . Fund Balances - Beginning of Year . As previously stated 3,352,053 3,352,053 Prior period adjustment 722,322 722,322 . As restated 3,352,053 4,074,375 722,322 . Fund Balances - End of Year $ 490,865 $ 5,170,758 $ 4,679,893 . The accompanying Notes to Financial Statements are an integral part of these statements. . . 10 . . . . . . . . Totals . (Memorandum Only) . Variance Favorable . Budget Actual (Unfavorable) . . '$ . 7,519,526 . $ 7,791,759 $ 272,233 . 900,000 758,367 (141,633) 3,608,581 3,430,537 (178,044) . 2,319,361 2,182,746 (136,615) . 255,000 415,896 160,896 380,400 597,612 217;212 . 155,716 131,010 (24,706) . 15,138,584 15,307,927 169,343 . . 5,158,788 4,840,946 317,842 . 6,503,238 6,407,678 95,560 . 3,897,227 1,923,892 1,973:335 . 1,331,517 1,301,005 30,512 6,078,366 1 ,111,782 4,966,584 . . 564,632 653,699 (89,067) 871,152 735,006 136,146 . 101,571 88,676 12,895 . 24,506,491 17,062,684 7,443,807 . . (9,367,907) (1,754,757) 7,613,150 . . 6,218,993 6,491,257 272,264 . (4,741,066) (!?,573,948) (832,882) 2,500,000 2,240,922 (259,078) . 3,977,927 3,158,231 (819,696) . . . (5,389,980) 1,403,474 6,793,454 . . 11,170,130 11,170,130 722,322 722,322 . 11,170,130 . 11,892,452 722,322 . $ 5,780,150 $ 13,295,926 $ 7,515,776 . . . 11 . .. . . .. . . . '. . . . . . . . . . . . . . . . . . . . . . . .' . . . . . . '. . . . . . This page intentionally left blank. , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES . For The Year Ended September 30, 2001 Proprietary Fund Types Enterprise Operating Revenues: User charges $ 5,604,667 Operating Expenses: Salaries and benefits 1,253,792 Materials and supplies 672,190 Depreciation and amortization 1,528,427 Other operating expenses 589,690 Total operating expenses 4,044,099 Operating income 1,560,568 Nonoperating Revenue (Expenses): Investment income 572,318 Interest expense (1,517,237) Connection fees 316,220 Contributed equipment 95,065 Gain (loss) on disposal of property and equipment (93,511 ) Total nonoperating revenue (expense) (627,145) Income before operating transfers 933,423 Operating Transfers: Operating transfers in 5,660 Operating transfers out (922,969) Net operating transfers (917,309) Net income 16,114 Retained Earnings - Beginning of Year 4,373,582 Retained Earnings - End of Year $ 4,389,696 The accompanying Notes to FinancialState~ents are an integral part of these statements. 12 . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINED STATEMENT OF CHANGES IN PENSION FUND NET ASSETS For The Year Ended September 30, 2001 Additions: Contributions: Employer Plan members Total contributions $ 556,318 211,957 768,275 Investment income: Net depreciation in fair value of investments' Interest Net investment income (410,082) 7,006 . (403,076) Total additions 365,199, Deductions: Benefits Administrative expenses Total deductions 198,371 34,646 233,017 Net Increase 132,182 Net Assets Held in Trust for Pension Benefits: Beginning of Year 5,140,310 End of Year '$ 5,272,492 The accompanying Notes to Financial Statements are an integral part of these statements. 13 CITY OF WINTER SPRINGS, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For The Year Ended September 30, 2001 Cash Flows from Operating Activities: Receipts from customers Payments to suppliers Payments to employees Net cash provided by operating activities Cash Flows from Non-Capital Financing Activities: Net operating transfers.in Net operating transfers out Increase in due from other funds Decrease in due to other funds Net cash provided (used) by non-capital financing activities Cash Flows from Capital and Related Financing Activities: Acquisition of property and equipment Additions to ,construction in. progress Proceeds from issuance of revenue bonds Principal paid on revenue bonds , Interest paid on revenue bonds Additions to bond issue costs Connection fees Net cash provided by capital and related financing activities Cash Flowsfrom Investing Activities: Investment income Net cash provided by investing activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Classified As: Current assets Restricted assets Total . . . .. .... Proprietary Fund Type Enterprise . . . . . . . . . . . $ 5,366,098 (1,373,343) (1,249,170) 2,743,585 5,660 . (922,969) (239,280) (1,211,913) (2,368,502) - ., . . . . . . . . . . . . . . . . . . . . ., . . . . . '. (275,062) (291,596) 12,843,746 (8,990,000) (1,744,335) (291,339) 316,220 1,567,634 p68,893 568,893 2,511,610 7,497,508 $ 10,009,118 $ 2,538,386 7,470,732 $ 10,009,118 The accompanying Notes to Financial Statements are an integral part of these statements, 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proprietary Fund Type Enterprise Reconciliation ,of Operating Income to Net Cash Provided by Operating Activities: Operating income $ 1,560,568 Adjustments Not Affecting Cash: Depreciation Amortization Increase in allowance for doubtful accounts 1,351,526 176,901, 43,568 Change in Assets and Liabilities: Increase in accounts receivable Decrease in inventories Decrease in accounts payable Increase in retainage payable Increase in accrued liabilities Decrease in customer deposits Decrease in utility agreement obligation Increase in accrued compensated absences Total adjustments (13,5,684) 2,039 (35,811 ) 6,741 2,293 (102,885) (128,000) 2,329 1,183,017 Net Cash Provided by Operating Activities $ 2,743,585 Noncash Investing, Capital and Financing Activities: Contributed property, plant and equipment Increase in the fair value of investments $ 95,065 3,425 15 . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . This page intentionally left blank. - . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . NOTES TO FINANCIAL STATEMENTS - ., . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMFNTS September 30, 2001 Note 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 fs located in the central Florida county of Seminole. The legislative branch of the City is comprised 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 of'local governments. The following is a summary of the more sigriificant policies: 'Reporting Entity - In evaluating how to define the ,government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make. up its legal entity. It is , , also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to prov!de specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the. organization. A financial . benefit or burden relationship exists if the primary government (a) is entitled to the organizations' resources; (b) is' legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. In applying. the above criteria, management has determined that there are no components units to be included within the reporting entity. 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA' NOTES TO FINANCIAL STATEMENTS September 30, 2001 Note 1 - Summary of Significant Accounting Policies (Continued): Fund Accounting - The accounts of the City are organizer! on the basis of funds or 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. The various funds are grouped by type in the financial statements. The following fund types and account groups are used by the City. .Governmental Fund Types General Fund - To account for all financial resources except those required to be accounted for in another fund. The General Fund is the general operating fund of the City. Special Revenue Funds - 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 - To account for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. Capital Projects Funds - To account for financial resourc~s to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Proprietary Fund Types Enterprise Funds ,- To account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City's enterprise fund consists of a water and sewer utility. Fiduciary Fund Types Trust Funds - To account for assets held by the City in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the City under the terms of a formal trust agreement. ' Account Groups General Fixed Assets Account Group - To account for all fixed assets of the City, other than those accounted for in the enterprise funds, . General Long-Term Debt -To account for the outstanding principal balances on any general long-term debt and certain other liabilities that are not specific liabilities of the enterprise of trust funds. 17 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS. Continued September 30, 2001 Note 1 . Summary of Significant Accountil.1g Policies (Continued): Basis of Accounting and Measurement Focus - Governmental fund types include the general, special revenue, debt service, and capital projects funds. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under this method of accounting, revenues are recognized when they become measurable and available as net cu~rent assets, or when susceptible to accrual; Le., both measurable and available. "Measurable" means that the amount of the transaction can be determined and "available" means collectible' within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the liability is incurred, except for principal and interest on general long-term debt, which is, recognized when due and certain compensated absences which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, certain intergovernmental revenues, interest and special assessments are susceptible to accrual. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The enterprise fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City adopted GASB Statement No. 20 and chose' not to apply all FASB pronouncements issued after November 30, 1989. , The basis of accounting and measurement focus of the pension trust fund is the same as the proprietary fund type and therefore is maintained on the accrual basis of accounting. 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 Propr.ietary 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. Encumbrances ~ Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is utilized in the governmental funds. Encumbrances are reported as reservations of fund balarwes and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. Cash and Cash Equivalents - Cash and cash equivalents include cash on hand, demand deposits, repurchase agreements and all highly liquid investments (including restricted assets) with a maturity of ninety days or less when purchased. 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAl STATEMENTS. Continllp.d September 30, 2001 Note 1 - Summary of Significant Accounting Policies (Continued): Investments - Investments in all fund types are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale, Fair value is based on quoted market prices. Income from investments held by the individual funds is recorded in the respective fund as it is earned. Changes in the fair value of investments is recognized as revenue and included in investment income, Inventories Inventories are stated at cost, using the FIFO method., The cost of governmental fund-type inventories are accounted for by the consumption method, under which such inventory is recorded as an expenditure when used. Unamortized Bond Costs - In the governmental fund types, bond issuance costs are charged as current expenditures when the bonds are issued. For the enterprise fund, bond costs are amortized on a straight-line basis, which approximates the interest method, over the life of the bonds. Restricted Assets - The use of certain assets of enterprise funds is restricted by specific provisions of bond resolutions and agreements with various parties. Assets so designated are identified as restricted assets on the balance sheet. Property, Plant and Equipment - Property, plant, and equipment owned by the enterprise funds. is stated at historical cost or estimated historical cost. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.. Contributions of property, plant, and equipment received from federal, state, or local sources are recordecl as contributions to equity when received. Major outlays for improyements are capitali~ed as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed net of interest earned on the invested proceeds over the same period. Depreciation of property, plant and equipment is provided qn the straight line basis over the following estimated useful lives: Buildings Improvements Equipment 10 - 30 years 20 - 40 years 5 - 10 years 19 ... ... CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAl STATEMENTS - ContinlU~d September 30, 2001 Note 1 - Summary of Significant Accounting Policies (Continued): General Fixed Assets - General fixed assets have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group, In the case of gifts or contributions, such assets are recorded at fair market value at the time received. Certain improvements, such as roads, bridges, curbs, gutters, streets, sidewalks, drainage systems, and lighting systems have not been' capitalized.~ Such assets normally are immovable and of value only to the City. No depreciation has been provided on general fixed assets, The City used to have an enterprise fund for their stormwater system and stormwater system improvements were capitalized. In 1997, the City converted this to a special revenue fund and ,transferred the stormwater system improvements to General Fixed Assets. Since 1997, the pOlicy'has b~en to not capitalizestormwater improvements. 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. Long- Term Obligations - Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been 'accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion expected to be fi~anced from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. Long-term Ii~bilities expected to be financed from proprietary fund operations are accounted for in those funds. Fund Equity ,Proprietary Funds - Contributed capital consists developers and fe,deral and state (capital) grants, assistance are recorded as non-operating revenue. of property and equipment from Grants received for operating, Reservations of retained earnings are created by increases. in assets restricted for debt service, renewal and replacement, and other contractual obligations. These increases result from earnings on restricted assets and other intrafund transfers to (f~om) restricted accounts. Earnings on restricted assets are included in net income of the Proprietary Funds. Reserves are not established for bond proceeds deposited into construction accounts. 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,. . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - ... . . ... .... ... - ... - CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - ,ContinlU~d September 30, 2001 Note 1 - Summary of Significant Accounting Poli,cies (Continued): Fund Equity (Continued) Governmental Funds ~ Reserves of the governmental funds are limited to the portions of fund balance which are either not subsequently' appropriated fo~ expenditures or legally segregated for a specific use. Interfund Transactions - Transactions which constitute reimbursements to a' fund for' expenditures (expenses) initially made are recorded as expenditures or expenses (as appropriate) in the reimbursing fund and as reductions of the expenditures (expenses) in the reimbursed fund. All interfund transactions except advances and reimbursements are accounted for as transfers" Nonrecurring or non-routine transfers of equity between funds are considered residual equity transfers. All other interfund transactions are treated as operating transfers. Total Co!umns on Combined Statements - Overview - 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, results of . operations or its cash flows in conformity with generally accepteq accounting principles.' Neither is such data comparable to a consolidation, Interfund eliminations have not been made in the aggregation of this data. Note 2 - Stewardship, Compliance and Accountability: Budget ~nd Budgetary Accounting - Budgets are legally adopted for all 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 (7) below) which is adopted on a budgetary basis. The City follows these 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 Manager submits a Proposed Budget to the City Commission for th~ fiscal year beginning the following October 1st. The Budget includes proposed revenues and expenditures, and a description of capital activities for the ensuing fiscal year. . 2, The City Commission then holds informal workshops. Each item in the budget is thoroughly discussed, and the public is invited to participate. 3. On or before September 30th of each year, the public hearings are completed and the Commission adopts the final budget and establishes the ad valorem tax millage, 21 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAl STATEMENTS- Continued September 30, 2001 Note 2 - Stewardship, Compliance and Accountability (Continued): Budget and Budgetary Accounting (Continued) 4, The budget may be formally amended by the City Commission at any time. Budgeted amounts presented in t~e accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets -during the year. 5. The City Manager is authorized to transfer budgeted amounts between accounts within a department. At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriations among programs within one department. The legal level, of budgetary control is the department level. Budget' and actual comparisons by department for the individual funds are in the Combining and Individual Fund section. ' 6, Appropriations I~pse at the end of the fi'scal year, 7. The following schedule reconciles the amounts on ,the Combjned Statement of Revenues, Expenditures and Changes in Fund, Balances - Budget and Actual - All Governmental Funds to amounts on the Combined Statement of Revenue, Expenditures and Changes in Fund Balances - All Governmental Funds (GAAP basis ): Special Revenue Fund Type Revenues GAAP basis Pass-through co?ts collected and remitted as agent in Solid Waste Fund ' Non-GAAP budgetary basis $5,210,584. 1,357,125 $R ~R7 70~ Fx:penditures $1,202,683 1,357,125 $? ~~~ ROR Excess of Expenditures over Appropriations - Actual expenditures exceeded budgeted appropriations in the Public Service Tax Special Revenue Fund and the Oak Forest Debt Service Fund, ' Appropriations in Excess of Funds Available - Appropriations for the Oak Forest Maintenance Special Revenue Fund and the Oak Forest Debt Service Fund were in excess of anticipated revenue and prior years fund balance. 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... ., . ,. . . . . . .' . . . . . . . . . . . . . . . . . . ... ., . . . . . . . . . . . . ... ... ... ., ... ... . ... .... - - CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Contimu~rf September 30, 2001 Note 3 - Cash and Investments: Following are the components of the City's cash and investments at September 30, 2001: LJnrp-~tricted Rp-~trictp-rf Ia.tal $21,018,206 8,453,272 ' $?!=l471 47R Cash and cash equivalents Investments $13,441,064 7,358,465 $?O 7!=l!=l fi?9 $7,577,142 1,094,807 $R R71 !=l4!=l Deposits - At September 30, 2001, "the carrying amount of the City's deposits was $21,018,206 and the bank balance was $21,474,068. The bank balance was covered by federal depository insurance and by de'posits held in banks tt:1at are members of the State of Florida Collateral Poo~. The Florida Collateral Pool is a multiple institution pool with the authority to assess member institutions in the event of any collateral shortfall. For this reaso~, the City considers its deposits insured or collateralized. Investments - Investment in all fund types are stated at fair value, which is the amount for which an investment could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the fair value of investments are recognized as revenue and included in investment income, The City 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 United States of America, bonds, notes, or other evidence of indebtedness issued by the ,Federal National Mortgage Associatipn 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. ' The City's investments are categorized to give an indication of the level of risk assumed by the City at September 30, 2001: ' 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 a counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by a counterparty, its trust department or agent, but not in the City's name. 23 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - ContinlU~d September 30, 2001 Note 3 - Cash and Investments (Continued): Investments (Continued) - $3,249,598 . . . .. . . . . . . . . . . . . . . . . . . . . . . . . ,. . . . . . . . . ,. . . . . . Investments in mutual funds and pension funds are not required to be categorized since the investments are not evidenced by securities that exist in physical or book entry form. At September 30,2001 the City had no investmentsTequired to be categorized. Fixed income mutual funds Pension funds investing in commingled bond and stock funds Note 4 - Accounts Receivable: The following is an analysis of Accounts Receivable: Governmental , Fund Tvpes Special Capital Revenue Projects Accounts receivable Less: allowance for uncollectible accounts $ 356,959 $10,274 (83,925) $ ?7~ 034 $10 ?74 Note 5 - Property Taxes: Proprietary Fund Types . Enterprise 5,203,674 $R 4fi~ ?7? Fiduciary Fund Types Pension Funds $1,209,869 $5,465 (449,019) $ 7RO RfiO $fi 4Rfi All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October l' of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount.. All unpaid taxes become delinquent on April 1 following the year in which they are assessed, On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. 24 . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMFNTS - Continued September 30, 2001 Note 5 - Property Taxes (Continued): The County bills and collects property taxes and remits them "to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. The City is permitted by the Municipal Finance Law of the State to levy taxes up to $10.00 per $1,000 of assessed valuation, The combined tax rate to finance general governmental services for the year ended September 30, 2001, was $3.54 per 1,000 which means that the City has a tax margin of $6.46 per 1,000 and could raise up to $6,882,422 additional property tax revenue a year from the present assessed valuation of $1,065,390,346 before the limit is ~~~. ' Note 6 - Property, Plant and Equipment: During the fiscal year ended September 30, 2001, the following changes in general fixed assets occurred: Balance Balance 10-1-00 Additions Deletions 9-30-01 Land $ 5,796,396 $ 158,182 $ $ 5,954,578 Buildings 5,316,987 5,316,987 Furniture and equipment , 2,641,420 23,5,394 189,439 2,687,37q Vehicles 2,217,036 291,503 - 109,692 2,398,847 Stormwater system 5,640,702 5,640,702 Park and recreation facilities 2,758,177 2,832,750 5;590,927 Construction in progress 2 695 097 137,653 2,832,750 $77 ORfi 81 fi $::3 55fi 487 $~ n1 881 $77 fi89 41R Construction in progress for general fixed assets as of September 30, 2001 consisted primarily of parks and recreational facilities, The sources of investment in general fixed assets are as follows: General fund Special revenue funds Capital projects funds Prior year sources not available $ 546,948 549,036 2,848,169 23,645,263 $77 fiS9 41R 25 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continm~d September 30, 2001 Note 6 - Property, Plant and Equipment (Continued): The components of property, plant and equipment for the Proprietary Fund Types at September 30, 2001, are as follows: Proprietary Fund Typp.~ Entp.rpri~p. Utility system Office building Office furniture and equipment Vehicles Land Construction in progress $34,637,171 637,546 925,291 701,257 4,409,062 396,867 41,707,194 (12659803) !l;?9 047 391 Less: accumulated depreciation Note 7 . Defined Benefit Pension Plan: Effective October 1, 1997, the City adopted a single-employer defined benefit plan and amended and restated its Money Purchase Pension and Trust, integrating the two' plans for purposes of providing minimum projected retirement benefits (referred to as a "floor-offset") that cover substantially all full time employees of the City. Effective October 1, 2000, the plan design changed to operate as a defined benefit without any defined contribution floor- offset as in prior years, Under a defined benefit plan approach, the plan benefits are based on a fixed formula as a percentage of compensation and service credits. The benefit payable at retirement is a life annuity payable monthly. On October 1, 2000, the City's money purchase pension plan was terminated and used to buy additional benefits in the defined benefit plan. This defined benefit plan is maintained as a pension trust fund and included as part of the City's reporting entity. This plan does not issue a stand-alone financial report. Summary of Significant Accounting Policies: Basis of Accounting - The Plan's financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to each Plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Method Used to Value Investments - lnvestmen~s are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international. exchange are valued at the last reported. sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value. 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS . Cnntinlu~d September 30, 2001 Note 7 . Defined Benefit Pension Plan (Continued): 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 Board of Trustees of the City of Winter Springs ("Board of Trustees"). The Board of Trustees of this plan are appointed by the City Commission. All City employees are eligible to participate in the plan on the first day of the month immediately following the date six m,onths after commencement of employment. Employees who have reached the age of 65, or have reached the age of 55 and have completed at least 10 ,years of service are, entitled to a retirement benefit payable monthly for life, equal to 3% 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, Effective' October 1, 2000, the City Commission approved a change in the benefit formula from 2% to 3% for future years as a participant under the plan. 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 normal retirement age of 65, or upon separation of service resulting from death, disability or eligibility for'an early retirement pension. ' Funding Policy -, The City is obligated to contribute to the Defined Benefit Plan in accordance with actuarially determined contributions. Employees must contribute 3% of their salary to the Plan, which amounted to $211,957 for the year ended September 30, 2001. The City's requ'ired contribution to the Defined Benefit Plan for the year ended September 30, 2001 was . $556,318, which was 11.4% of the covered payroll as determined by the October 1, 2000, actuarial valuation. Any changes to required contributions must be approved by the City Commission. Membership in the Defined Benefit Plan consisted of the following at October 1, 2000: Retirees and beneficiaries receiving benefits 10 Terminated plan members entitled to but not receiving benefits 17 Active plan members: Vested 201 Non-vested -18 246 , 27 CITY OF WINTER SPRINGS,' FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2001 Note.7 - Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation - The City has contributed the Annual Required Contribution (ARC) since inception of the plan on October 1, 1997, and thus has not had or had need to report, a Net Pension Obligation (NPO). Required supplementary information is as follows: Schedule of Contributions from the Employer Fiscal year Annual ,Required Percentage of eru:1ed . Contribution (ARC) ARC Contribution 9/30/01 $556,318 100% 9/30/00 254,646 100% 9/30/99 298,000 100% 9/30/98 349,289 100% Schedule of Funding Progress Actuarial UAAL as Actuarial Accrued Unfunded a % of Actuarial Value of ' (AAL) AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) .(aLb.) (c) (b-t::!) /c 10/1/98 $ 366,840 $1,765,450 $1,398,610 26.2% $4,840,362 28.9% 10/1/99 745,460 2,120,844 1,375,384 35.1 5,143,401 26.7 10/1/00 4,933,945 7,701,059 2,767,114 64'.1 5,324,680 52.0 Notes to Required Supplementary Information - the information presented in the required supplementary schedules was determined as part of the actuarial. valuation -at the date indicated. Additional information as of the latest (October 1', 2000) actuarial valuation follows: Assumptions: Investment Earnings Salary Increases - Inflation Postretirement Benefi(lncreases Mortality Table 8% 3% 0% 1983 Group Annuity Mortality Table Actuarial Valuation: Frequency Cost Method Amortization Method Amortization Period Asset Valuation Method Biennial Frozen Entry Age Level Percentage ' 40 Years Open Market Value 28 . . . . . . . . . . - . . . . . . . . ,. . . . . . . . . . '. . . . . . '. . . . . . . . . . . CITY OF WINTER SPRINGS,' FLORIDA ... ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NOTES TO FINANCIAL STATEM'ENTS - Continued September 30, 2001 Note 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 30,2001. Note 9 - Bonds and Notes Payable: Changes in General Long- Term Debt - Following is a summary of changes in general long- , term debt for the year ended September 30, 2001: ... .... . ... ... ... .... - - 29 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued. September 30,2001 Note 9 - Bonds and Notes Payable (Continued): 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 resolutiollS provide for the City's optional early redemption of outstanding bonds at call rates varying from 100% to 102% of the instrument's .face value plus accrued interest, depending on the call date. The redemption period. began October 1, 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 b.e invested in authorized investment securities which mature not later than the dates on which the monies on deposit will be needed for the purpose of such fund.' Reserve Account monies may be invested in securities maturing not later than five years from the date of their. deposit into 'the Reserve Account. : 5. Pledge of revenues. , ' The bonds and related interest are payable solely from and collateralized by a lien on the Public Service Tax that the City is entitled to levy on certain' utility sales and Franchise Fees levied by the City for a 30-year electric franchise granted by the City in 1984. 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .... . . . . ... .. '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,CITY OF WINTER SPRINGS, FLORIDA, NOTES TO FINANCIAL STATEMENTS, - Cnntinlu~d September 30, 2001 Note 9 - Bonds and Notes Payable (Continued): Improvement Refunding Revenue Bonds and Improvement Revenue Bonds - The Improvement Refunding and Improvement Revenue Bonds consisted of. the following at September 30,2001. Interest Rates and Dates. Maturity Original Amount Principal Balance Outstanding at September 30,2001 Improvement Refunding 3.90% - 5.5% '10/1/99 - Revenue Bonds - Series 1993 (4/1&10/1) 10/1/18 $q R~fl nnn $R flnn nnn Subordinate Improvement 4.89% 10/1/99 - Revenue Bonds - Series 1997 (4/1 & 10/1) 10/1/02 $ fl7fl nnn $ ?4fl nnn Improyement Refunding 3.25% -5.25% 10/1/10 - Revenue Bonds - Series 1999 (4/1 & 10/1) 10/1/29 $7 qqR q7n $7 R~~ q7n Capital Improvement Revenue Notes, Series 2000A and 2000B ~ In June 2000, the City issued these notes to finance the acquisition of. a data processing system, a medical transport vehicle and the construction of the Oak Forest subdivision wall. ' Capital Improvement Revenue Note, Series 2000A - payable in five annual principal and interest payments of $204,742 through June 2005. Interest is at. 4.67%. $ , 731,606 Capital Improvement Revenue Note, Series 2000B - payable interest only at 4.67% through June 2004, and balloon principal payment with interest due June 2005. 620,253 $1 ~fl1 Rflq ... ... Special Assessment Revenue Bonds, Series 2001 - In May 2001, the City issued these bonds to finance the acquisition and construction of improvements in the Tuscawilla Lighting' and Beautification District. These series 2001 ,bonds are payable from and secured by a first lien and pledge of assessments levied on property within the assessed area as well as the first $160,000 of half-cent sales tax received by the City each year. Interest on these bonds ranges from 3.4% to 5.25%, with principal and interest'payments through October 2029. . . . . . ... .... - - 31 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2001 Note 9 - Bonds and Notes Payable (Continued): Water and Sewer Refunding Revenue Bonds - The major provisions of the resolutions. authorizing the Water and Sewer Refunding Revenue Bonds are as follows: ' 1, Establishment and maintenance of various funds, including the Revenue Fund, Debt Service Fund and Renewal and Replacement Fund. 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 ope~ating 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. 3. . Pledge of revenues. The bonds are payable solely from and collaterali~ed 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. 4. Rate Covenant. The City shall establish rates that will provide revenue sufficient to pay all costs of operation and maintenance each year pius one hundred ten percent (1100/0) of the Bond Service Requirement coming due in such year. 5, Additional Parity Obligations. The City may issue additional obligations having an equal lien on the net revenues . , subject to various conditions including that such net revenues are equal to but not ,less than 110% of the maximum bond services requirement on all obligations then outstanding. 32 . . . . '. . . . . . . . . . . . . . . . '. . . . . . . . ... .. a ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2001 Note 9 - Bonds and Notes Payable (Continued): The Water and Sewer bonds consisted of the following at September 30,2001: Description Water and Sewer Refunding Revenue Bonds - Series 1992 Less original issue discount - net of amortization Water and Sewer Refunding Revenue Bonds - Series 2000 Less original issue discount - net of amortization Water and Sewer Refunding Revenue Bonds- Series 2001 Less original issue di?count - net of amortization I nterest Rates and .D..ates Maturity Original Amount 4.55 - 6,125% (4/1 & 10/1) 10/1/98 - 4/1 /20 $1 R 01!) oon 4.5 - 5.5% (4/1 & 10/1) 10/1/01 - 10/1/30 R9R9191 4.0 - 5.0% (4/1&10/1) 10/1/01 - 10/1/30 $ R OR!) 000 Total Less current portion Long-term portion Principal Balance Outstanding at September 30,2001 $13,895,000 (118,000) 13,777,000 6,969,191 (34,944 ) 6,934,247 6,06,5,000 (153,073) 5 911,927 26,623,174 (650,OOO) $?5 97~ 174 . 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 $2,184,574 for these connections through September 30,2001, ... .... ... .... ... .... - .... - - - - - - At September 30, 2001, outstanding balances were as follows: Estimated accrual for remainder of obligation Less current portion Long-term portion at September 30, 2001 - - 33 $218,000 (72,000) $14R 00'0 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2001 Note 9 - Bonds and Notes Payable (Continued): Annual Requirements to Maturity - The annual debt service requirements to amortize all bonded debtof the City as of September 30,2001 are as follows: ' Year Ended General Long-Term Debt Enterprise Fund Total Sept 30 Principal ' , Interest Principal Interest Debt Service 2002 $ 385,000 $ 684,574 $ 420,000 $ 1,063,037 $ 2,552,611 2003 455,000 731,622 670,000 1,247,559 3,104,181 2004 490,000 707,954 705,000 1,214,542 3,117,496 2005 515,000 685,499 740,000 1 ,177,111 . 3,117,610 2006 545,000 661,276 785,000 1,138,010 3,129,286 2007-2011, . 3,305,000 2,890,558 . 4,605,000 4,999,674 15,800,232 2012-2016 4,645,000 1,870,115 6,.070,000 3,535,779 16,120,894 2017-2021 4,541,677 3,229,203 6,810,000 1,604,391 16,185,271 2022-2026 2,196,657 4,999,857 2,759,653 7,073,721 17,029,888 2027 -2031 1..565,636 3,150,753 3,364,538 6,526,087 14,607,014 $1R R4~ q70 $1qR11411 $?R q?q 1 q1 $?q S7q q11 $q4 7R4 4R~ Following is: the maturity schedule of principal payments due on the' Capital Improvement Revenue Notes payable: ' Year Ended Sept 30 2002 2003 2004 2005 $ 170,576 178,542 186,880 815,861 $1 ~S1 RSQ Advance Re(undings - (1) The City of Winter Springs used $2,255,893 of the proceeds of the Water and Sewer Refunding Revenue Bonds, Series 2000, to advance refund the City~s outstanding subordinate Water and Sewer Revenue Bonds, Series 1997, which had a balance of $2,280,000 on the date refunded. The total of $2,255,893 was deposited with the Escrow Agent to purchase U.S. Government securities that will provide for debt service payments until the bonds are called on October 1, 2002. The refunded bonds are considered defeased and the liability has been removed from enterprise fund debt. Because the maturity date of the new bonds was extended to the year 2030, the cash flows required to service the new debt is $4,813,444 higher than the cash flows required to service the old debt which matured in 2007. However, this advance refunding did result in an economic gain (difference between the present value of debt service payments on the old and new debt) of$46,737, 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - ContinlH'!d September 30, 2001 Note 9 - Bonds and Notes Payable (Continued): Advance Refundings (Continued) - (2) The City of Winter Springs issued Water and Sewer Refunding Revenue Bonds, Series 2001 to advance refund Water and Sewer Refunding Revenue Bonds, Series 1991. The City used $5,923,188 of the proceeds of the Series 2001 Bonds, together with $127,577 previously on deposit, and deposited a total of $6,050,765 with the escrow agent to purchase U.S. Government securities. These securities will be used to provide for debt service payments until the bonds are called on October 1, 2001, As a result the refunded bonds are considered to be defeased and the liability has been removed from the enterprise fund debt. As a result of the advance refunding, the City reduced its total debt service requirements by $1,262,996, which resulted in an economic gain of $732,286. Note 10 - Lease Obligations: Capital Leases - The City has entered into a lease agreement as lessee for financing the acquisition of a medical transport vehicle. This lease agreement qualifies' as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of their inception in the General Fixed Asset Account Group. Equipment under capital leases recorded in the General Fixed Asset Account Group at September 30, 2001 consists of the following: Medical Transport Vehicle $134,568 Debt service, payments on equipment capitalized in the General Fixed Asset Group are recorded as expenditures in the Medical Transport Special Revenue Fund. The following is a schedule by years of future minimum lease payments under the capital lease, together with the present,value of the net minimum lease payments as of September 30: Year Ending September 30. ... .. ... .... ... .... ... .... ... .... - - 2002 2003 2004 Tqtal Minimum Lease Payments Less, Amount Representing Interest Present Value of Net Minimum Lease Payments $30,056 30,056 15 028 75,140, (4,160) $70 QRO 35 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - CnntinlH~d September 30: 2001 Note 11 -lnterfund.Receivables and Payables: The following schedule as of September 30, 2001, represents interfund receivables and payables: Fund Type General Fund Special Revenue Funds: Police Education Fund Special Law Enforcement Trust Fund Transportation Improvemerit Fund Streetlighting Fund Solid Waste Fund Stormwater Utility Fund Public Service Tax Fund Excise Tax Fund Electric Franchise Fund. Transportation Impact Fee Fund Medical Transport Fund Arbor Fund TLBD Maintenance Fund _ ' Oak Forest Maintenance Fund Debt Service Funds: 1999 Debt Service Fund Oak Forest Debt Service Fund Capital Project Funds:, 1997 Construction Fund 1999 Construction Fund Information System Project Fund TLBD Improvement Fund Oak Forest Capital Fund Revolving Rehab Capital Projects Fund Enterprise Fund . Note 12 ,; Risk Management: The ~ity is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; job-related illnesses or injuries to employees; and natural disasters. Risk of loss from the above is transferred by the City ,to various commercial insurers throug~ the purchase of insurance. There has been no significant reduction in insurance , coverage from the previous year. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. ' 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .' '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS. Continued September 30, 2001 Note 13 . Contributed Capital: Contributed capital recorded in the Enterprise Fund at September 30, 2001 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. Prior to October 1, 2000, the City recorded as contributed capital equipment donated by developers upon physical connection to the water and sewer system. However, there are no additions to contributed capital for the year ended September 30, 2001 because the City was required to implement GASB Statement No. 33. This statement requires governmental entities that use proprietary fund accounting to recognize capital contributions and impact fees received as re\(enues, not contributed capital. However, governments are not allowed to restate contributed capital arising from periods prior to implementation of Statement No. 33 until implementation of GASB Statement No. 34. Note 14- Summary Disclosure of Significant Contingencies: Grants - Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the City. In the opinion of management, any such adjustments would not be significant. Litigation - During the ordinary course of its operations, the City is a party to various claims, 'legal actions, and complaints, In the opinion of the City's management and legal counsel, these matters are not anticipated to have a material financial impact on the City. Note 15 . Commitments: At September 30, 2001, the City had entered into contracts for construction in the amount of $1,962,454. Note 16 . Subsequent Event: In November of 2001, the City issued $13,980,000 of Water and Sewer Refunding Bonds, Series 2002, to realize interest savings from refunding approximately $13.9 million in Water and Sewer R~funding Revenue Bonds, Series, 1992. The Series 2002 Bonds mature in 2020. Note 17 - Prior Period Adjustment: During the year ended September 30, 2000, the City signed a mortgage receivable agreement with a nonprofit entity. Amounts disbursed' under this agreement were recorded as expenditures in error, resulting in the overstatement of expenditures and understatement of ,assets iri the 1999 Construction Capital Project Fund. The fund balance at October 1, 2000 for this capital project fund was increased by $722,322 to correct this error. This correction has no effect on revenue or expenditures for the current year ending September 30, 2001. 37 ... .... . . . '. '. . . . . . . . . .. . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS These financial statements provide a more detailed view of the "General Purpose Financi~1 Statements" presented in the preceding subsection. Combining statements are presented when there are more than one fund of a given fund type. ... .... ... .... - .... ... - ... - - - - - - - - - - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . '. . . . . . . . . . . This page intentionally left blank; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GENERAL FUND The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in another fund. ... .... ... .... ... .... - - ... - - .... ... - ... - - - . CITY OF WINTER SPRINGS, FLORIDA . . STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN' FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND . For The Year Ended September 30, 2001 . . Variance . Favorable Budget Actual (Unfavorable) . Revenues: . Taxes: . Property taxes, $ 3,676,262 $ 3,625,569 $ (50,693) . Franchise taxes 316,000 333,756 17,756 3,992,262 3,959,325 (32,937) . Licenses and permits: . Building permits 450,000 426,533 (23,467) Occupational licenses 100,000 115,460 15,460 . 550,000 541,993 (8,007) Intergovernmental revenues: . Sales tax 2,028,885 . 1,918,529 (110,356) . State revenue sharing 691,896 680,544 (11,352) Other state shared revenue 286,145 275,885 (10,260) . Other county shared revenue 39,155 44,722 5,567 . Federal grants 119,000 220,022 101,022 3,165,081 3,139,702 (25,379) . Charges for services: . Concession stand receipts, 126,350 74,006 (52,344) Program activity fees 95,500 90,285 (5,215) . Rental and other 32,067 85,841 53,774 . 253,917 250,132 (3,785) Fines and forfeitures: . Fines and forfeitures 200,000 314,492 114,492 200,000 314,492 114,492 . Investment income 200,000 220,427 20,427 . . Miscellaneous 155,716 53,291 (102,425) . Total revenues $ 8,516,976 $ 8,479,362 $ (37,614) . . . . . . . . . . . . . 38 . . . ., . . Variance . Favorable . ' Budget Actual (Unfavorable) . Expenditures: . Current: General government- . Commission $ 129,695 $ 123,062 $ 6,633 . Various boards 29,825 6,750 23,075 City manager 279,430 249,298 30,132 . City clerk 186,600 153,740 32,860 . Finance 428,309 392,567 35,742 Personnel ,93,869 97,094 (3,225) . Utility finance-meter services 344,652 332,952 11 ,700 Information services 362,185 234,845 127,340 . Purchasing 340,091 314,984 25,107 . Utility billing 282,142 279,689 2,453 Engineering 57,285 55,648 1,637 . Community development-planning 406,560 390,415 16,145 . . Community development-review 59,522 46,929 12,593 General government 297,406 386,276 (88,870) . 3,297,571 3,064,249 233',322 . Public safety- Police 3,580,175 3,601,791 (21,616) . Fire 2,318,825 2,261,095 57,730 . Building 294,968 291,991 2,977 Code enforcement 164,095 153,258 10,837 . 6,358,063 6,308,135 49,928 . Physical environment- Public works 1 ,341 , 152 1,301,831 39,321 . Culture and recreation- . Recreation-admin 180,994 187,946 (6,952) .' Recreation-athletics 96,821 98,658 (1,837) Recreation-concession s 200,359 113,971 86,388 . Recreation-parks & grounds 628,266 662,018 (33,752) . Recreation-program & S,E. 134,106 141 ,192 (7,086) Recreation-seniors 90,871 97,201 (6,330) . 1,331,417 1,300,986 30,431 . Total expenditures 12,328,203 11,975,201 353,002 . Excess (Deficiency) of Revenues . Over Expenditures (3,811,227) (3,495,839) 315:388 . Other Financing Sources (Uses) . Operating transfers in 2,908,915 3,719,262 810,347 Operating transfers out (30,422) (117,089) (86,667) . Net other financing sources (uses) 2,878,493 3,602,173 723,680 . Excess (Deficiency) of Revenues . and Other Sources Over Expenditures and Other Uses (932,734) 106,334 1,039,068 . . Fund Balances - Beginning of Year 3,323,229 3,323,229 . Fund Balances - End of Year $ 2,390,495 $ 3,429,563 $ 1,039,068 . . 39 . SPECIAL REVENUE. FUNDS Special Revenue Funds are used to account for revenues from specific taxes or 9ther earmarked revenue sources, which are legally restricted to expenditures for particular purposes. The City has the following special revenue funds: ' Police Education Fund Special Law Enforcement Trust Fund Transportation Improvement Fund Recreation Acquisition Fund Streetlighting Fund Solid Waste Fund Stormwater Utility FOnd Public Service Tax Fund Excise Tax 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, 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. - Revenues in this fund are derived from Local Option Gaso.line 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 d~ainage. - 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. - This fund was established to record proceeds of a special streetlighting assessment from the Country Club Village subdivision. Proceeds are used to pay for lighting and administrative costs. - This fund is used to account for proceeds from ,billed ~olid waste and recycling performed by contract vendors. Proceeds are used, to pay monthly vendor charges for providing solid waste and recycling services. - This fund was established due to a comprehensive development plan to charge for the establishment and maintenance of stormwater utility systems. Proceeds are used to pay for the maintenance of the City's stormwater system. - 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. - This fund is a pass - through fund that receives electric franchise fees submitted to the CJty in conjunction with the. City's electric. franchise agreements. Proceeds are transferred to the Electric Franchise Fee Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . '. . . - Electric Franchise Fee Fund Transportation Impact Fee Fund, Police Impact Fee Fund Fire Impact Fee Fund - . . . . . . . . . . . . .. . . . . . . . . . . Medical Transport Fund Arbor Fund TLSD Maintenance Fund Oak Forest Maintenance Fund ... .... - .... ... .... ... .... - - - - SPECIAL REVENUE FUNDS - 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. - 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, ' - This fund is used to account for collected impact fees on new 'development to defray the cost of capital investment needed to maintain the level of police'service due to future growth, - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the lever of fire service due to future growth. - 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. - This fund is used to account for arbor revenues, This revenue source is used to maintain a level of plantings in the City. - This fund is used to account for collected special assessments for . maintenance related to the Tuscawilla Lighting and Beautification District. - This fund is used to account for collected special assessments for maintenance related to the Oak Forest subdivision wall. . . . . .' . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . '. . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING, BALANCE, SHEET ALL SPECIAL REVENUE FUNDS' September 30, 2001 Police Special Law Transportation Recreation Education Enforcement Improvement Acquisition Fund, Trust Fund Fund Fund Assets: Cash and cash equivalents $ 58,407 $ 25,716 $ .288,831 $ 107,269 Receivables Due from other funds 10,659 3,905, 284 Total Assets $ 69,066 $' 29,621 $ 289,115 $ 107,269 Liabilities and Fund Balances: Liabilities: Accounts payable .$ $ $ 126,462 $, Accrued liabilities Due to other funds Total Liabilities - 126.462 Fund Balances: Reserved: Encumbrances' 394 133,451 Unreserved 68,672 29,621 29,202 107,269 Total Fund Balances 69,066 29,621 162,653 107,269 Total Liabilities and Fund Balances $ 69,066 $ 29,621 $ 289,115 $ 107,269 40 . . . . . . . . . Stormwater Public Electric . Streetlighting Solid Waste Utility SerVice Excise Franchise Fund Fund Fund Tax Fund Tax Fund Fee Fund . . $ $ $ 227,724 $ 365,312 $ 490,686 $ 275,058 . 168,145 . 3,398 587,538 335,786 210,693 131,212 621,898 . $ 3,398 $ 587,538 $ 563,510 $ 744,150 $ 621,898 $ 896,956 . . . . $ $ 110;341 $ 11,754 $ 2,500 $ $ . 1,220 399,230 739,756 621,898 896,956 . 110,341 412,204 742,256 621,898 896,956 . . . 30,177 3,398 477,197 121,129 1,894 . . 3,398 477,197 151,306 1,894 . $ 3,398 $ 587,538 $ 563,510 $ 744,150 $ 621,898 $ 896,956 . . . . . ... ... ... .... ... ., ... .... ... (Continued) - ... .... - - - - - - - 41 - - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS September 30,2001 Transportation Police Fire Medical Impact Impact Impact Transport Fee Fund Fee Fund Fee Fund Fund Assets: Cash and cash equivalents $ 1,779,093 $ 264,767 $ 338,103 $ 408,910 Receivables 104,889 Due from other funds Total Assets $ 1,779,093 $ 264,767 $ 338,103 $ 513,799 Liabilities and Fund Balances: Liabilities: Accounts payable $ 5,601 $ - '$ $ 2,929 Accrued liabilities Due to other funds 166,482 123,809 Total Liabilities 172,083 126,738 Fund Balances: Reserved: Encumbrances 170,639 Unreserved 1,436,371 264,767 338,103 387,061 Total Fund Balances 1,607,010 264,767 338,103 387,061 Total Liabilities and Fund Balances $ 1,779,093 $ 264,767 $ .338,103 $ 513,799 42 . . . . . . . . . TLBD Oak Forest . Arbor Maintenance Maintenance Fund Fund Fund Total . . $ - $ 290,543 $ 13,076 $ 4,933,495 . 273,034 . 28,293 143- 1,933,809 . $ 28,293 $ 290,686 $ 13,076 $ 7,140,338 . . . . $ - $ 3,250 $ - $ 262,837 1,220 . 489 2,948,620 . 3,250 489 3,212,677 . . . 250 334,911 28,293 287,186 - 12,587 3,592,750 . . 28,293 287,436 12,587 3,927,661 . $ 28,293 $ 290,686 $ 13,076 $ 7,140,338 . . . . . . . . . . . . . . . 43 . . CITY OF WINTER SPRINGS, FLORIDA . . COMBINING STATEMENT OF REVENUES, . EXPENDITURES AND CHANGES IN FUND BALANCES . ALL SPECIAL REVENUE FUNDS . For the Year Ended September 30, 2001 . . Police Special Law Transportation Recreation . Education Enforcement Improvement Acqui,sition . Fund Trust Fund F'und Fund Revenues: . Taxes and special assessments $ $ $ $ . Licenses and permits . Intergovernmental revenues 290,835 Charges for services . . Fines and forfeitures 6~,678 38,726 . Investment income 961 331 3,074 1,613 Miscellaneous 77,719 . Total revenues 63,639 39,057 293,909 79,332 . . Expenditures: . Current: General government . P~blic safety 22,995 14,330 ' . Physical environment 210,291 Culture and recreation 19 . Debt Service:, Principal retire,ment . Interest and fiscal charges . Issuance costs , Total expenditures 22;995 14,330 210,291 19 . Excess (Deficiency) of Revenues . Over Expenditures 40,644 24,727 83,618 79,313 . . Other Financing Sources (Uses): . Operating transfers in . Operating transfers out Net other'financing sources (uses) . Excess (Deficiency) of Revenues and . Other Financing Sources over . Expenditures and Other Financing Us 40,644 24,727 83,618 79,313 . Fund Balance - Beginning of Year 28,422 4,894 79,035, 27,956 . Fund Balance - End of Year $ 69,066 $ 29,621 $ 162,653 $ 107,269 . . . . . . 44 . . . . . . . . . . Stormwater Public Electric . Streetlighting Solid Waste Utility Service Excise Franchise . Fund Fund Fund Tax Fund Tax Fund Fee Fund . . $ $ $ $ 2,492,952 ,$ 1,253,696 $ . . 7,269 61,388 341 ,446 . 7,179 15,692 2,591 6,952 . 7,269 61,388 348,625 2,508,644 1,256,287 6,952 . . . 6,307 410,361 1,309 1,595 . . . . . ... 6,307 410,361 1,309 1,595 .... ... .... ... ' 962 61,388 (61,736) 2,507,335 1,256,287 ' 5,357 .... - - - - 1,256,287 - (108,000) (26,175) (2,507,335) (1,256,287) (1,261,645) - (108,000) (26,175) (2,507,335) (1,256,287) (5,358) - - - - - - 962 (46,612) (87,911) (1 ) - 2,436 523,809 239,217 1;894 $ 3,398 $ 477,197 $ 151,306 $ 1,894 $ $ (Continued) , 45 . . CITY OF WINTER SPRINGS, FLORIDA . COMBINING STATEMENT OF REVENUES, . EXPENDITURES AND CHANGES IN FUND BALANCES . ALL SPECIAL REVENUE FUNDS . For the Year Ended ~eptember 30, 2001 . . Transportation ,Police Fire Medical . Impact Impact Impact Transport . Fee Fund Fee Fund Fee Fund Fund . Revenues: . Taxes and special assessments $ $ $ $ Licenses and permits . 146,889 40,926 22,313 . Intergovernmental revenues . Charges for services 165,386 Fines and forfeitures . Investment income 91,619 8,724 11,718 16,372 . Miscellaneous Total revenues 238,508 49,650 34,031 181,758. . . Expenditures: . Current: General government . . Public safety 46 46 62,126 . Physical environment . 379,651 Culture and recre'ation . Debt Service: . Principal retirement 51,329 Interest and fiscal charges 10,159 . Issuance costs . Total expenditures 379,651 46 46 123,614 . Excess (Deficiency) of Revenues . Over Expenditures (141,143) 49,604 33,985 58,144 . Other Financing Sources,(Uses): . Operating transfers in .. Operating transfers out ... Net other financing sources (uses)' .. Excess (Deficiency) of Revenues and . Other Financing Sources over . Expenditures and Other Financing USE (141,143) 49,604 33,985 58,144 . Fund Bal~nce - Beginning of Year 1,748,153 215,163 304,118 328,917 . Fund Balance - End of Year $ 1,607,010 $ 264,767 $ 338,103 $ 387,061 . . . . . . , . .46 . . . . . . - . . .. TLBD Oak Forest . Arbor Maintenance Maintenance . Fund Fund Fund Total . . $ $ 143 $ 22,111 $ 3,768,902 6,246 216,374 . 290,835 . 575,489 101,404 . 12,586 449 179,861 . 77,719 6,246 12,729 22,560 5,210,584 . . . 419,572 . '99,543 . 8,375 13,875 9,869 622,061 19 . . 51,329 10,159 . . 8,375 13,875 9,869 1,202,683 . 4,007,901 . (2,129) (1,146) 12,691 . . 30,422 1,286,709 ... (5,159,442) .... 30,422 (3,872,733) - - - - - - 28,293 (1,146) 12,691 135,168 - - 288,582 $ (104) 3,792.493 - - - $ 28,293 $ 287,436 $ 12,587 $ 3,927,661 - - - - - - - - - - - 47 - . , . CITY OF WINTER SPRINGS, FLORIDA . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES.IN FUND BALANCES - BUDGET AND ACTUAL . SPECIAL REVENUE FUNDS . For the Year Ended September 30,2001 . . Police Education Fund . Variance Favorable. . Budget Actual (Unfavorable) . Revenue,s: . Taxes and special assessments $ $ $ . Licenses and permits Intergovernmental revenues . Charges for services . Fines and forfeitures 30,000 62,678 32,678 Investment income 500 961 461 . Miscellaneous Total revenues 30,500 63,639 33,139 . Expenditures: . Current: . General government . Public safety 25,100 22,995 2,105 Physical environment . Culture and recreation . Debt service: Principal retirement . Interest and fiscal charges . Issuance costs Total expenditures 25,100 22,995 2,105 . Excess (Deficiency) of Revenues . Over Expenditures 5,400 40,644 35,244 . Other Financing Sources (Uses) . Operating transfers in . Operating transfers out Net other financing sources . (uses) . Excess (Deficiency) of Revenues . and Other Sources Over . Expenditures and Other Uses, 5,400 40,644 35,244 . Fund Balances - Beginning of Year 28,422 28,422 . Fund Balances - End of Year ; $ 33,822 $ 69,066 $ 35,244 . . . . .' . ... . 48 . CITY OF WINTER SPRINGS, FLORIDA Variance Favorable (Unfavorable) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL' SPECIAL REVENUE FUNDS For the Year Ended September 30, 2001 Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues, Charges for services Fines and forfeitures Investment income' Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Issuance costs Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Operating transfers in Operating transfers out Net other financing sources (uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balances - Beginning of Year Fund Balances - End of Year. Recreation Acquisition Fund Budget Actual $ $ 700 1,613 77,719 79,332 700 100 19 100 19 600 79,313 600 79,313 ' 27,956 27,956 $ 28,556' $ 107,269 50 $ 913 77,719 78,632 81 81 78,713 78,713 $ 78,713 . . . . . ., . . Streetlighting Fund Solid Waste Fund . Variance Variance Favorable Favorable . Budget Actual (Unfavorable) Budget Actual (Unfavorable) . . $ $ $ $ $ $ . . 7,000 7,269 269 1,585,000 1,418,513 (166,487) . . 7,000 7,269 269 1,585,000 . 1,418,513 (166,487) . . . 7,000 6,307 693 1,375,000 1,357,125 17,875 . . . . . 7,000 6,307 693 1,375,000 1,357,125 17,875 ... W' ... ., 962 962 210,000 61,388 (148,612) ... ... - - - (102,000) (108,000) (6,000) - - (102,000) (108,000) (6,000) - - - - - - 962 962 108,000 (46,612) (154,612) - - 2,436 2,436 523,809 523,809 - - - $ 2,436 $ 3,398 $ 962 $ 631,809 $ 477,197 $ (154,612) - (Continued) 51 . . CITY OF WINTER SPRINGS, FLORIDA . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN FUND BALANCES - BUDGET AND ACTUAL . SPECIAL REVENUE FUNDS . For the Year Ended September 30, 2001 . . Stormwater Utility Fund . Variance Favorable . Budget Actual (U nfavorable) . Revenues: . Taxes and special assessments $ .$ $ . Licenses and permits Intergovernmental revenues . Charges for services 335,000 341 ,446 6,446 . Fines and forfeitures Investment income 5,000 7,179 2,179 . Miscellaneous Total revenues 340,000 348,625 8,625 . Expenditures: . Current: . General government 470,217 410,361 ~9,856 . Public safety Physical environment . Culture and recreation . Debt service: Principal retirement . Interest and fiscal charges . Issuance costs Total expenditures 470,217 410,361 59,856 . Excess ,(Deficiency) of Revenues . Over Expenditures (130,217) (61,736) 68,481 . Other Financing Sources (Uses) . Operating transfers' in . Operating transfers out (26,175) (26,175) Net other financing sources . (uses) (26,175) (26,175) . Excess (Deficiency) of Revenues . and Other Sources Over . Expenditures and Other Uses. (156,392) . (87,911) 68,481 . Fund Balances - Beginning of Year 239,217 239,217 . Fund Balances - End of Year $ 82,825 $ 151,306 $ 68,481 . . . . . . . 52 . . . . . . . . . Public Service Tax Fund Excise Tax Fund . Variance Variance Favorable Favorable . Budget Actual (Unfavorable) Budg~t Actual (U nfavorable) . . $ 1,903,600 ' $ 2,492,952 $ 589,352 $ 1,100,000 $ 1,253,696 $ 153,696 . . . 5,000 15,692 10,692 2,591 2,591 . 1,908,600 2,508,644 600,044 1,100,000 1,256,287 156,287 . . . 1,309 (1,,309) . . - . . . 1,309 (1,309) . . 1,908,600 2,507,335 598,735 1,100,000 1,256,287. 156,287 . . . (1,908,600) (2,507,335) (598,735) (1,100,000) (1,256,287) (156,287) ... (1,908,600) (2,507,335) (598,735) (1,100,000) (1,256,287) (156,287) . - .... - - - - - 1,894 1,894 - - - $ 1,894 $ 1,894 $ $ $ $ - - - - - (Continued) - - - - - - - - 53 - . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SPECIAL REVENUE FUNDS For the Year Ended September 30, 2001 Electric Franchise Fee Fund Variance Favorable Budget Actual ' (Unfavorable) Revenues: Taxes and special assessments $ $ $ Licenses and permits Intergovernmental revenues Charges for services ,Fines and forfeitures Investment income 2,500 6,952 4,452 Miscellan~ous Total revenues 2,500 6,952 4,452 Expenditures: Current: General government 9,000 1,595 7,405 Public safety Physical environment Culture and recreation Debt service: Principal retirement - Interest and fiscal charges Issuance costs Total expenditures ' 9,000 1,595 7,405 Excess (Deficiency) of Revenues Over Expenditures (6,500) 5,357 11,857 Other Financing Sources (Uses) Operating transfers in 1,100,000 1,256,287 156,287 Operating transfers out (1,093,500) (1,261,645) (168,145) Net other financing sources (uses) 6,500 (5,358) (11,858) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (1 ) (1 ) Fund Balances - Beginning of Year Fund Balances - End of Year $ $ $ (1 ) 54 - . . . . . . . . . . . . . . Transportation'lmpact Fee Fund Police Impact Fee Fund . Variance . Variance Favorable Favorable . Budget Actual (Unfavorable) Budget Actual' (Unfavorable) . . $ $ $ $ $ $ .' 225,000 146,889 (78,111) 30,000 40,926 10,926 218,500 (218,500) . . 25,000 91,619 66,619 1,200 8,724 7,524 . 468,500 238,508 (229,992) 31,200 49,650 18,450 . . . . 100 46 54 1,835,500 379,651 1,455,849 . .' . . 1,835,500 379,651 1,455,849 100 46 54 . . (1,367,000) (141,143) 1,225,857 31,100 49,604 18,504 . . . . ... .... - - - (1,367,000) (141 ,143) 1,225,857 31 , 1 00 49,604 18,504 .... -. 1,748,153 1,748,153 215,163 215,163 - - .... $ 381,153 $ 1,607,010 $ 1,225,857 $ 246,263 $ 264,767 $ 18,504 - - ... - - (Continued) - - - - - - - - 55 - - - . CITY OF WINTER SPRINGS, FLORIDA . . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN FUND BALANCES - BUDGET AND ACTUAL . SPECIAL REVENUE FUNDS . For the Year Ended September 30, 2001 . . Fire Impact Fee Fund . Variance Favorable . Budget Actual (Unfavorable) . Revenues: . Taxes and special assessments $ $ $ Licer:tses and permits 40,000 22,313 (17,687) . Intergovernmental revenues . Charges for services Fines and forfeitures . Investment income ,5,000 11,718 6,718 ' . Miscellaneous Total revenues 45,000 34,031 (10,969) . Expenditures: . Current: . General government . Public safety 100, 46 54 Physical environment . Culture and recreation . Debt service: Principal retirement . Interest and fiscal charges fssuance costs . Total expenditures 100 46 54 . Excess, (De,ficiency) of Revenues - . Over Expenditures 44,900 33,985 (10,915) . Other Financing Sources (Uses) . Operating transfers in . Operating transfers out Net other financing sources . (uses) . Excess (Deficiency) of Revenues . and Other Sources Over . Expenditures and Other Uses 44,900 33,985 (10,915) Fund ,Balances - Beginning of Year 304',118 304,118 . . Fund Balances - End of Year $ 349,018 $ 338,103 $ (10,915) . . . . . . 56 . . . . . . . . . . Medical Transport Fund Arbor Fund . Variance Variance Favorable Favorable . Budget Actual (Unfavorable) Budget . Actual (Unfavorable) . . $ $ $ $ $ $ . 55,000 6,246 (48,754) . 138,444 165,386 26,942 . 16,372 16,372 . 138,444 181,758 43,314 55,000 6,246 (48,754) . . . . 105,445 62,126 43,319 70,600 8,375 62,225 . . 25,271 51,329 (26,058) . 6,157 10,159 (4,002) . 1,571 1,571 138,444 123,614 14,830 70,600 8,375 62,225 . . 58,144 58,144 (15,600) (2,129) 13,471 . . 30,422 30,422 . . 30,422 . 30,422 . . . 58,144 58,144 14,822 28,293 13,471 . 328,917 328,917 . $ 328,917 $ 387,061 $ 58,144 $ 14,822 $ 28,293 $ 13,4 71 . . . (Continued) , . . . . 57 . . . CITY OF WINTER SPRINGS, FLORIDA . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN FUND BALANCES - BUDGET AND ACTUAL . SPECIAL REVENUE FUNDS, . For the Year Ended September 30, 2001 . . TLBD Maintenance Fund . Variance Favorable . Budget Actual (Unfavorable) . Revenues: . Taxes and special assessments $ 275,000 $ 143 $ (274,857) . Licenses and permits Intergovernmental revenues . Charges for services . Fines and forfeitures Investment income 10,000 12,586 2,586 . Miscellaneous Total revenues 285,000 12,729 ' (272,271 ) . Expenditures: . Current: . General government . Public safety Physical environment 337,430 13,875 323,555 . Culture and recreation . Debt service: Principal retirement . Interest and fiscal charges . Issuance costs Total expenditures 337,430 13,875 323,555 . Excess (Deficiency) of Revenues . Over Expenditures (52,430) (1,146) 51,284 . Other Financing Sources (Uses) . Operating transfers in . Operating transfers out (173,000) 173,000 Net other financing sources . (uses) (173,000) 173,000 . Excess (Deficiency) of Revenues . and Other Sources Over . Expenditures and Other Uses (225,430) (1,146) 224,284 . Fund Balances - Beginning of Year 288,582 288,582 . Fund Balances - End of Year $ 63,152 $ 287,436 $ 224,284 . . . . . . . 58 . . . . . . . . . Oak Forest Maintenance F'und Totals . Variance Variance Favorable Favorable . Budget Actual (Unfavorable) Budget Actual (U nfavorable) . . $ 23,117 $ 22,111 $ (1,006) $ 3,301,717 $ 3,768,902 . $ 467,185 . 350,000 216,374 (133,626) 443,500 290,835 (152,665) . 2,065,444 1,932,614 (132,830) 55,000 101,404 46,404 . 1,000 449 (551) 56,900 179,861 122,961 . 77,719 77,719 24,117 22,560 (1,557) 6,272,561 6,567,709 295,148 . .' . 1,861,217 1,776,697 84,520 . 145,175 99,543 45,632 24,217 9,869 14,348 2,556,075 622,061 1,934,014 ' . 100 19 81 . 25,271 51,329 (26,058) . 6,157 10,159 (4,002) . 1,571 1,571 24,217 9,869 14,348 4,595,566 2,559,808 2,035,758 . . ' , (100) 12,691 12,791 1,676,995 4,007,901 2,330,906 . . 1,130,422 1,286,709 156,287 . (4,403,275) (5,159,442) (756,167) . (3,272,853) (3,872,733) (599,880) . .' . (100) 12,691 12,791 (1,595,858) 135,168 1,731,026 ... (104) (104) 3,792,493 3,792,493 ... ... $ (204) $ 12,587 $ 12,791 $ 2,196,635 $ 3,927,661 $ 1,731,026 - ... ... ., ... .... - .... ... ... ... .... - 59 - - - . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . DEBT SERVICE FUNDS Debt service funds are used to account for the accumulation of resources and payment of the bond issues of the City. 1993 Debt Service Fund 1997 Debt Service Fund 1999 Debt Service Fund Oak Forest Debt Service Fund Tl..BD Debt Service Fund Information Sys~em 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. - This fund is used. to account for the accumulation of resources and payment of principal and interest for. the 1997 bond issue, This fund is used to account for the accumulation of resources and payment of principal and interest for. the 1999 bond issue. - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2000 note payable (Oak Forest portion)., - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2001 Special assessment bond issue. - This fund is used to' account for the accumulation of resources and payment of principal and interest for the 2000 note payable (data processing portion). 1993 Debt 1997 D~bt 1999 Debt Service Fund Service Fund Service Fund Assets: Cash and cash equivalents $ 273,524 $ 119,811 $ 282,370 Due from other funds 35,938 Prepaid expenses Total Assets $ 273,524 $ 119,811 $ 318,308 Liabilities and Fund Balances: Liabilities: Due to other funds $ $ -, '$ Total Liabilities Fund Balances: Reserved for debt service 273,524 119,811 318,308 Total Liabilities and Funa Balances $ 273,524 $ 119,811 '$ 318,308 . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS , September 30, '2001 ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oak Forest TLBD Information Debt Service Debt Service System Debt Fund Fund Service Fund Total $ 205 $ 46,850 $ $ 722,760 35,938 9,346 9,346 $ 9,551 $ 46,850 $ $ 768,044 ,$ 100 $ 100 $ $ 100 100 9,451 46,850 767,944 $ 9,551 ' $ 46,850 $ $ 768,044 .-. ... .. ... .-. ... . . .. ., .-. ... .-. ... - - - - 61 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES , ALL DEBT SERVICE FUNDS For ~he Year Ended September 30,200.1 1993 Debt 1997 Debt Service Fund Service Fund Revenues: Investment income Total revenues $ 4,923 $ 4,923 Expenditures Debt Service: Principal retirement Interest and fiscal charges Total expenditures 45,000 446,177 491,177 Excess (Deficiency) of Revenues Over Exp~nditures (486,254) Other Financing Sources (Uses) , Operating transfers in Net other financing sources (uses) , 488,30,5 488,305 Excess (Deficie~cy) of Revenues and , Other Financing Sources over Expendit!Jres and Other Financing Uses 2,051 Fund Balance -Beginning of Year 271,473 115,000 15;364 130,364 (130,364) 127,025 127,025 (3,339) 123,1 pO Fund Balance - End of Year $ 213,524 $ 119,811 " 62 1999 Debt Service Fund $ 8,197 8,197 200,000 196,929 396,929 (388,732) 399,204 399,204 10,472 307,836 $ 318,308 . . '. . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oak Forest TLBD Information . Debt Service Debt Service System Debt . Fund Fund Service Fund Total . . '$ 224 $ 186 $ $, 13,530 . 224 186 13,530 . . . 103,009 139,361 602,370 . 32,403 33,974 724,847 . 135,412 173,335 1,327,217 . . (135,188) 186 (173,335) (1,313,687) . . 144,743 46,664 173,335 1,379,276 . 144,743 46,664 173,335 1,379,276 . . . 9,555 46,850 65,589 . (104 ) 702,355 . . $ 9,451 $ 46,850 $ $ 767,944 . . . . . . . . . . . . ' 63 . Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses , (100) 2,051 2,151 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE FUNDS For the Year Ended September 30, 2001 1993 Debt Service Fund Budget Actual Variance Favorable (Unfavorable) Revenues: Investment income Total revenues $ 6,500 6,500 $ 4,923 4,923 $ (1,577) (1 ;577) , Expenditures: Debt service: Principal retirement Interest and fiscal charges Total expenditures 45,000 45,000 446,938 446,177 761 491,938 491,177 761 (485,438) (486,254 ) (816) 485,338 488,305 2,967 485,338 488,305 2,967 Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Operating transfers in Net other financing sources (uses) Fund Balances - Be,ginning of Year 271,473 271,473 Fund Balances - End of Year $ 271,373 $ 273,524 $ 2,151 64 . . . . . . . . . . 1997 Debt Service Fund 1999 Debt Service Fund Variance Variance . Favorable Favorable . Budget Actual (Unfavorable) Budget Actual (Unfavorable) . . $ $ $, $ $ 8,197 $ 8,197 . 8,197 8,197 . .- 115,000 115,000 '200,000 200,000 . 17,604 15,364 2,240 201,030 196,929 4,101 . 132,604 130,364 2,240 401,030 396,929 4,101 . . (132,604) (130,364) 2,240 , (401,030) (388,732) 12,298 . . 132,604 127,025 (5,519) 401,030 399,204 (1,826) . 132,604 127,025 (5,579) 401,030 399,204 (1,826) . . . (3,339) (3,33.9) 10,472 10,472 . 123,150 123,150 307,836 307,836 . $ 123,150 $ $ (3,339) $ 307,836 $ 318,308 $ 10,472 . 119,811 . . . ... ... .. ., .. ... . . (Continued) .-. ., .. ... .-. ... - 65 - - - . . . . . . . . . . . - - CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT ,OF REVENUES,' EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE FUNDS For the Year Ended September 30', 2001 Oak Forest Debt Service Fund Variance Favorable Budget Actual (Unf~iVorable ) Revenues: Investment income $ $ 224 $ 224 Total revenues 224 224 Experiditues: Debt service: Principal retirement ' 103,009 (103,009) Interest and fiscal charges 32,469 32,403 66 Total, expenditures 32,469 135,412 (102,943) Excess (Deficiency) of Revenues Over Expenditures (32,469) (135,188) (102,719) Other Financing Sources (Uses): Operating transfers in 32,369 144,743 112,374 Net other financing sources (uses) ;32,369' 144,743 112,374 Excess (Deficiency) of Revenues and OtherSources Over Expenditures and Other Uses ' (100) 9,555 9,655 Fund Balances - Beginning of Year ( 1 04 ) , ( 1 04 ) Fund Balances - End of Year $ (204 ) $ 9,451 $ 9,655 . . . . . . . . . . .' . . . . . '. . . . . . . . . . . . . . . 66 . . . . . . . . . . TLBD Debt Service Fund Infor.mation System Debt Service Fund Variance Variance . Favorable Favorable . Budget Actual (Unfavorable) Budget Actual (Unfavorable) . . $ $ 186 $ 186 $ $ $ . 186 186 . . 40,000 40,000 139,361 139,361 . 133,000 133,000 33,954 33,974 (20) . 173,000 173,000 173,315 173,335 (20) . . (173,000) 186 173,186 (173,315) (173,335) (20) . . 173,000 46,664 (126,336) , 173,315 173,335 20 . 173,000 46,664 (126,336) 173,315 173,335 20 . . . 46,850 46,850 . . .-. $ $ 46,850 $ 46,850 $ $ $ ... - ... - - .- - - - - - (Continued) - - - - - - - - - - 67 -- . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE FUNDS For the Year Ended September 30,2001 Totals . Variance Favorable Budget Actual (Unfavorable ) Revenues: Investment income $ 6,500 $ 13,530 $ 7,030 Total revenues 6,500 13,530 7,030 Expenditures: Debt service Principal retirement 539,361 602,370 (63,009) Interest and fiscal charges 864,995 724,847 140,148 Total expenditures 1 ,404,356 1,327,217 77,139 Excess (Deficiency) of Revenues Over Expenditure~ (1,397,856) (1,313,687) 84,169 Other Financing Sources (Uses): Operating transfers in 1-,397,656 1,379,276 (18,380) Net other finanCing sources (use~) 1,397,656 1,379,276 (18,380) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (200) 65,589 65,789 Fund Balance - Beginning of Year 702,355 702,355 Fund Balance - End of Year $ 702,155 $ 767,944 $ 65,789 68 . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . .. ., .-. ., . - - .-. ... - - - - - CAPITAL 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 1999 Construction Fund Information System Project Fund TLBD Improvement Fund Oak Forest Capital Fund Revolving Rehab Capital Projects Fund - This fund was established for the acquisition and construction of City - owned Capital Improvements. - This fund was established for the acquisition and construction of City - owned Capital Improvements. - This fund was established for the acquisition of a new computer system. - This fund was established to account for construction of improvements to the Tuscawilla Lighting and Beautification District. ' This fund was established to account for construction of the Oak Forest subdivision wall. - This fund was ' established to provide loans for rehabilitation projects within the City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,. . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET ALL CAPITAL PROJECT FUNDS September 30, 2001 Information 1997 1999 System Construction Construction Project Fund ,Fund Fund Assets: Cash and cash equivalents $ 113,789 $ 2,161,802 -$ Accrued interest receivable 10,274 Due from other funds 115,446 237,209 Prepaid expenses 30,250 Mortgage receivable 803,645 Total Assets $ 113,789 $ 3,091,167 $ 267,459 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ 166,022 $ , 25,932 Due to other funds 77 162,392 Total Liabilities 77 328,414 25,932 Fund Balances: Reserved for encumbrances 38,993 Reserves for mortgage receivable 803,645 ' Reserved for capital projects 113,712 1,920,115 ' 241 ,527 Total Fund Balances 113,712 2,762,753 ' 241,527 Total Liabilities and Fund Balances $ 113,789 $ 3,091,167 $ 267,459 69 . . . . . . . . Revolving . Rehab . TLBD Oak Forest Capital Improvement Capital Projects . Fund Fund Fund Total . . $ 2,215,906 $ 137,532 $ $ 4,629,029 . 10,274 589 106,010 459,254 . - 30,250 . 803,645 . $ 2,215,906 ' $ 138,121 $ 106,010 $ 5,932.452 . . . $ 8,228 "$ $ $ 200,182 . 366,655 32,388 561,512 374,883 32,388 761,694 . . 38,993 . 803,645 . 1,841,023 105,733 106,010 4,328,120 . 1 ,841 ,023 105,733 106,010 5,170,758 . $ 2,215,906 $ 138,121 $ 106,010 $ 5,932,452 . . . . . . .-. ... . .. ., . . .-. ... - ... .-. ... - 70 - - - . . CITY OF WINTER SPRINGS, FLORIDA . COMBINING STATEMENT OF REVENUES, . EXPENDITURES AND CHANGES IN FUND BALANCES . ALL CAPITAL PROJECT FUNDS . For the Year Ended September 30,2001 . . . Information . 1997 1999 System . Construction Construction Project . Fund Fund Fund . Revenues: . Taxes and special assessments $ $ $ Investment income 4,653 130,362 . Total revenues 4,653 130,362 . . Expenditures . Capital outlay: . General government 124 202,496 326,613 Physical environment . Debt service: . Issuance costs Total expenditures 124 202,496 326,613 . Excess (Deficiency) of Revenues . Over Expenditures 4,529 (72,134) (326,613) . . Other Financing Sources'(Uses) . Operating transfers in .. ... Operating transfers out (106,010) . Bond proceeds Net other financing sources (uses) (106,010) . Excess (Deficiency) of Revenues and . Other Financing Sources over . Expenditures and Other Financing Uses 4,529 ' (178,144) (326,613) . Fund Balances - Beginning of Year . As previously stated 109,183 2,218,575 568,140 . Prior period adjustment 722,322 . As restated 109,183 2,940,897 . 568.140 . Fund Balances - End of Year $ 113,712 $ 2,762,753 $ 241,527 . . . . . . 71 . . . . . . . . . . Revolving . Rehab TLBD Oak Forest Capital . Improvements Capital ' Projects . Fund Fund Fund Total . . $ 1,588 $ 61,944 $ $ 63,532 . 35,518 13,261 183,794 37,106 75,205 ' 247,326 . . . . 529,233 273,092 309,457 582,549 . . 88,676 88,676 . 361,768 309,457 1,200,458 . (324,662) (234,252) (953,132) . . . 106,010 106,010 . (46,664) (144,743) (297,417) . 2,240,922 . 2,240,922 2.194,258 (144,743) 106,010 2,049,515 . . . 1,869,596 (378,995) 106,010 1,096,383 . . (28,573) .484,728 3,352,053 . 722,322 . (28,573) 484,728 4,074,375 .. $ 1,841,023 $ 105,733 $ 106,010 $ 5,170,758 ., . . . . . .-. 72 ... .-. ... . . . . . . . . . . '. .' '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 'CAPITAL PROJECTS FUNDS For the year ended September 30, 2001 73 . . . . . . . . . . 1999 Construction Fund Informatior. System Project Fund Variance Variance . Favorable Favorable . Budget Actual (Unfavorable) Budget Actual (Unfavorable) . . $ $ $ $ $ $ 75,000 130,362 55,362 . . 75,000 130,362 55,362 . . . 2,260,543 . 202,496 2,058,047 543,140 326,613 216,527 . . .' 2,260,543 202,496 2,058,047 543,140 326,613 216,527 .' . . (2,185,543) (72,134) 2,113,409 (543,140) (326,613) 216,527 . . (106,010) (106,010) . .. (106,010) (106,010) ... . . (2,185,543) (178,144) 2,007,399 (543,140) (326,613) 216,527 .-. ... .-. ... 2,218,575 - 2,218,575 568,140 568,140 - 722,322 722,322 - 2,218,575 2,940,897 722,322 568,140 568,140 .. -. - $ 33,032 $ 2,762,753 $2,729,721 $ 25,000 $ 241,527 $ 216,527 - ... .-. - - - - - - - - (Continued) - - - - 74 - - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . ,. CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUNDS For the Year Ended September 30, 2001 TLBD Improvements Fund Variance Favorable Budget Actual (Unfavorable) Revenues: Taxes and special assessments $ 160,000 $ 1,588 $ (158,412) Investment income 30,000 35,518 5,518 Total revenues 190,000 37,106 (152,894) Expenditures: Capital outlay: General government Physical environment 2,170,100 273,092 1,897,008 Debt service Issuance costs 100,000 88,676 11,324 Total expenditures 2,270,100 361,768 1,908,332 Excess (Deficiency) of Revenues Over Expenditures (2,080,100) (324,662) 1,755,438 Other Financing Sources (Uses) Operating transfers in - Operating transfers out (275,000) (46,664 ) 228,336 Note proceeds 2,500,000 2,240,922 Net other financing sources (uses) 2,225,000 2,194,258 228,336 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses 144,900 1,869,596 1,983,774 Fund Bal~mces - Beginning of Year As previously stated (28,573) (28,573) Prior period adjustment As restated (28,573) (28,573) Fund ,Balances - End of Year $ 116,327 $ 1,841,023 $ 1,983,774 75 . . . . . . . . . .' Oak Forest Capital Fund Revolving Rehab Capital Projects Fund Variance Variance . Favorable Favorable . Budget Actual (Unfavorable) , Budget Actual (Unfavorable) . .' $ 65,547 $ 61,944 $ (3,603) $ $ $ . 10,000 13,261 3,261 2,000 (2,000) 75,547 75,205 (342) 2,000 (2,000') . . . 784,000 . 320,483 309,457 11,026 784,000 . . 320,483 309,457 11 ,026 784,000 784,000 . . (244,936) (234,252) 10,684 (782,000) 782,000 . . 782,000 106,010 (675,990) . (32,369) (144,743) (112,374) . (32,369) (144,743) (112,374) 782,000 106,010 (675,990) . . . (277,305) (378,995) (101,690) 106,010 106,010 . .-. 484,728 ' 484,728 ., .-. 484,728 484,728 ... .-. - $ 207,423 $ 105,733 $(101,690) $ $ 106,010 $ 106,010 - ... - - .. ... . (Continued) - ... .-. ... - - - 76 - - - . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUNDS For the Year Ended.September'30, 2001 ' 77 . . . . . . . . . . . . . . . . . . . . . . . . .' . . . .. . - ... - ... - - .-. ... - - - - - - - - - - - - - - - - -. - - -- FIDUCIARY FUND TYPES Pension Trust Funds are used to account for assets held by the City in a fiduciary capacity for, individuals, governmental entities and others: Such trust funds are operated by carrying out specific terms of trust indentures, statutes, ordinances, grant requirements, or other governing re'gulations. Description of Funds Pension Trust Funds: Money Purchase Pension Plan - Accounts for the accumulation of resources to be used for payment of retirement benefits to employees of the City, Defined Benefit Plan - Accounts for the accumulation ,of resources to be used for payment of retirement benefits to employees of the City based upon an actuarial study. . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF CHANGES IN PENSION FUND NET ASSETS For the Year Ended September 30,2001 Pension Trust Funds Money Defined Purchase Benefit Pension Plan Plan Totals Additions: Contributions: Employer $ $ 556,318 $ 556,318, Plan Members 211,957 211,957 Total contributions ' 768,275 ,768,275 Investment income: Net depreciation in fair value (410,082) (410,082) Interest 7,006 7,006 Net investment income(loss) (403,076) (403,076) Total additions 365,199 365,199 Deductions: Benefit payments 198,371 198,371 Administrative expenses 34,646 34,646 Total deductions 233,017 233,017 Net Increase ' 132,182 132:182 Net Assets Held in Trust for Pension Benefits: Beginning of year 3,913,621 1,226,689 5,140,310 Residual Equity Transfer (3,913,621 ) 3,913,621 End of year $ $ 5,272,492 $ 5,272.492 .-. ... .-. ... - - - - - - - - - - - - - - - - - - - - - 78 - - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . 'General Fixed Assets . Account Group . . . . . . . . . . . . . . . . . . . . .. ... - ... .-. - - - - - - - - - - - - - - - - - - - - - - - - - - - -- ACCOUNT GROUPS - To, account for all fixed assets .of the City i other than those accounted for in the Enterprises Funds, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . - . . . . . .' . . . . . . . . . . . . . . . . . . . . . . .-. - .-. ... - - - ... - - - - .-. ... - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY For the Year Ended September 30,2001 General Government Culture Physical And Environment Recreation Prior Year Function Not Available Total Public Safety Land' $ - $ - $ 158,182 $ $ 5,796,396 $ 5,954,578 Buildings 1,927,398 2,883,080 110,685 395,824 5,316,987 Furniture and equipment 815,089 778,485 751,778 312,023 2,687,375 Vehicles 110,454 1,629,673 544,567 114,153 2,398,847 Stormwater system 5,640,702 5,640,702 Park & recreational, facilities . 5,590,927 5,590,927 Total $ 2,852,941 $ 5,291,238 $ 7,205,914 $ 6,442,927 $ 5,796,396 $ 27,589,416 Deletions Balance and Balance 10-01-00 Additions Transfers 09-30-01 General Government $ 2,852,035 $ 119,961 $ 119,055 $ 2,852,941 Public Safety 5,172,655 206,247 87,664 5,29.1,238 Physical Environment 6,921,515' , 355,438 71,039 7,205,914 Culture & Recreation 6,323,214 141,086 21,373 6,442,927 Prior year function not available 5,796,396 5,796,396 Total $ 27,065,815 $ 822,732 $ 299,131 $ 27,589,416 79 . . . . . . . . . . . . . . .. . . . ,. . . . .. . . . . . . . . . . . ,.. . . . . . -. . ' . . . This page i~tentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SUPPLEMENTARY INFORMATION Supplementary information is presented to provide greater detailed information deemed useful for clarity. It is not necessary for presentation in conformity with generally accepting accounting principles. .-. ... .-. ... .-. ... - - - ... - - - - - - 80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF REVENUES AND EXPENSES-BUDGET AND ACTUAL ENTERPRISE FUND WATER AND SEWER UTILITY OPERATING ACCOUNT For the Year Ended September 30,2001 Variance Favorable Budget Actual (Unfavorable) Revenues: Water revenues $2,400,000 $2,216,540 $ (183,460) Sewer revenues 3;144,890 3,199,092 54,202 Water connection fees 70,000 50,406 (19,594) Sewer connection fees 240,000 , 265,814 25,814 Guaranteed revenues 1,000 1,890 890 Reuse water fees 80,000 87,562 7,562 Turn off/on fees 1,000 1,664 664 Meter charges 60,000 26,115 (33,885) Application fees 20,000 18,661 (1,339) , Tampering fees 500 20 (480) Inspection fees 7,000 3,225 (3,775) NSF check fees 2,500 4,990 2,490 Interest earned - 100,000 276,595 176,595 Miscellaneous charges 10,000 17,685 7,685 Reservation charges 15,000 27,223 12,223 Stormwater administration fee '5,660 5,660 2001 bond proceeds 6,204,550 6,204,550 T<;>tal revenues 12,362,100 12,407,692 45,592 Expenses: Salaries $1,060,368 $ 996,321 $ 64,047 ' Payroll taxes and benefits 261,673 257,471 4,202 Trustee fees and service charges 1,500 4,860 (3,360) Physical exams 5,100 2,269 2,831 Consulting engineer 15,000 11,942 3,058 Consultant services 7,500 2,600 4,900 Administrative services 803,772 836,302 (32,530) Travel and per diem 3,000 ' 754 2,246 Telephone 8,500 8,617 (117) Postage 1,200 582 618 Utility services 390,000 407,857 (17,857) Sludge disposal 90,000 80,801 9,199 Equipment rental 5,000 853 4,147 Repairs and maintenal}ce 250,000 236,100 13,900 Office supplies, printing & advertising 13,160 8,800 4,360 Fuel and oil 26,952 38,851 (11,899) Tires and filters 5,000 3,603 1,397 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating supplies Testing and samples Chlorine Backflow devices Uniforms Janitorial supplies Small tools and equipment , Protective clothing Dues and registrations , Employee development Transfer to 2000 Info System Debt ser:vice Capital improvements Vehicles Other equipment Debt service-principal Debt service-interest Bond issuance costs Renewal and replacement Revenue generation Developer agreement payments Refunding Series 1991 , Total expenses Net income(loss) Appropriation from retained earnings - - .-. - - ... - - .. ... .-. ... - ... - - - - - - Budget $ 57,500 16,000 70,000 48, 8,590 1,300 8,000 4,970 9,100 8,500 86,657 284,140 24,000 166,440 788,500 1,381,291 131,000 120,200 51,006 150,000 6,073,550 12,388,517 (26,417) 26,417 $ 81' Actual ,$ 52,780 13,756 38,890 48 6,722 1,249 7,731 3,288 8,913 7,815 86,657 527,207 21,819 163,451 930,000 ' 1,383,337 130,702 120,200 51,006 (8,000) 6,050,765 12,496,919 (89,227) $ (89,227) Variance Favorable (Unfavorable) $ 4,720 2,244 31,110 1,868 51 269 1,682 187, 685 (243,067) 2,181 2,989 (141,500) (2,046) 298 158,000 22,785 (108,402) (62,810) 26,417 $ (36,393) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . This page intentionally left blank. .-. ., . . . . .' . . . . . . . . . . . . . . . . '. . . . . . . . . . . . - ., - ... - - - ... STATISTICAL SECTION The statistical schedules differ from other financial statement presentations because they generally disclose more than one fiscal year and may present non-accounting data, such as social and economic data and financial trends of the City. - - - - - - - - - -- -- - - - - . . . . . '. . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . .. ., .. ... - ... - - - ... - - - - - - - - - - - - - - - -- - - - - -- STATISTICAL SECTION LIST OF SCHEDULES General Governmental Expenditures by Function General Governm~ntal Reven~es by Source Property Tax Levies and Collections Assessed and Estimated Value of Taxable Property Net of Exemptions Property Tax Rates Direct and Overlapping Governments Special Assessment Billings and Collections Legal Debt Margin Computation of Direct and Overlapping General Obligation Debt Revenue Bond Coverage Demographic Statistics Property Valu~s and Construction , 'Schedule of Ten Largest Taxpayers Miscellaneous Statistical Data 82 . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . '. .. ... .. ... - - CITY OF WINTER SPRINGS, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal General Public Physical Year Government Safety Environment 1992' $ 964,622 $ 3,020,447 $ 795,276 1993 1,176,983 3,122,557 923,250 1994 ~ ,265,435 3,299,148 820,962 1995 1,52{584 3,556,352 1,011,424 1996 1,522,378 3,684,567 1,153,694 1997 1,950,449 4,108,319 ,1,084,121 1998 2,591,811 4,725,544 1,159,944 1999 2,726,281 5,355,195 1,119,185. 2000 3,039,087 5,807,995 1,762,780 2001 ' 3,483,821 6,407,678 1,923,892 (1) This schedule includes expenditures of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. . . . . . . . . Culture and Capital Debt . Recreation Outlay Service Total (1) . . $ 344,054 $ 2,356,816 $ 791,145 $' 8,272,360 . 556,109 1,125,814 597,969 ,7,502,682 . 634,147 668,910 934,731 7,623,333 . . 706,716 1,114,097 1,078,491 8,991,664 ' . 753,557 1,516,789 1,012,325 9,643,310 . 814,125 2,454,088 963,044 11,374,146 . . 843,115 2,705,800 967,605 12,993,819 . 1,042,556 1,792,208 2,057,757 14,093,182 . . 1,200,702 4,347;463 978,819 17,136,846 . 1,301,005 1,111,782 1,477,381 15,705,559 . . . . . . . . . .. . .-. ... .-. ... - ... - - . - - - ... - - - 83 - - - Fiscal Year Taxes Licenses And Permits Inter- Governmental Revenues Charges For Services Fines and Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . '. . . CITY OF WINTER SPRINGS, FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE Last Ten Fiscal Years 1992 $ 4,011,756 $ 664,848 $ 1,731,717 $ 45,365 $ 274,510 1993 4,308,605 1,023,098 1,843,049 97,393 258,626 1994 4,970,690 1,222l808 1,863,892 104,724 169,940 1995 4,874,118 '857,024 2,020,651 132,191 154,556 1996 5,234,145 949,701 2,183,187 206,210 178,234 1997 5,406,995 990,477 2,290,120 687,152 208,667 1998 5,967,375 943,220 2,583,849 742,766 183,714 1999 6,298,975 1,762,848 2,918,244 914,748 249,206 2000 7,322,542 931,588 3,261,472 1,073,902 298,357 2001 7,791,759 758,367 3,430,537 825,621 415,896 . (1) This schedule includes revenues of the General Fund, Special Revenue Funds, Debt Service Funds,. and Capital Projects Funds. 84 . . . . . . . . Investment' Misc. . Income Income Total (1) . . . $ $ 65,802 $ 6,793,998 . 184,541 66,655 7,781,967 . . 342,169 305; 127 8,979,350 . 462,256 610,659 9,111 ,455 . . 429,517 595,403 9,776,397 . , 454,922 641,202 10,679,535 . . 447,343 737,539 ' 11,605,806 . 383,955 927,367 13,455,343 . . 597,515 13,676 13,499,052 . 597,6'12 131,01'0 13,950,802 . . . . . . .-. - - ... .-. ... .-. ... - - - - - - - - - - - - - - 85 - -- , . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS,' FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Delinquent Percentage of Total Current Tax Tax Total Tax Total Collections Fiscal Year Tax Levy (1) Collections (2) Collections Collections To Tax Levy 1992 $ 2,299,468 $ $ ,$ 0% 1993 2,333,990 2,232,344 810 2,233,154 95.68% 1994 2,610,826 2,507,783 4,161 2,511,944 96.21 % 1995 2,665,426 2,559,179 16,817 2,575,996 96.64% 1996 2,769,752 2,670,643 9,896 2,680,539 96,78% 1997 2,882,773 2,786,845 4,636 2,791,481 96.83% 1998 3,074,799 2,960,328 7,678 2,968,006 96.53% ,1999 3,215,932 3,097,939 25,225 3,123,164 97,12% 2000 3,453,596 3,333,199 2,817 3,336,016 96,60% 2001 3,771,445 3,618,281 7,?88 3,625,569 96,13% (1) Gross taxes before discount of 1 % - 4%, depending on month paid (2) Collection information is not available before 1993 Source: Seminole County Tax Collector's Office - - - - - - - - - - - - - - - - - - - - - - - - - -- 86 Centrally Assessed and Real Property Personal Property Fiscal Tax Assessed Estimated Assessed Estimated Year Year Value Actual Value Value Actual Value 1992 1991 $ 785,825 $ 785,623 $ , 21,264 $ 21 ,264 1993 1992 802,113 801,890 20,920 20,920 1994 1993 830,212 829,973 21,876 21,876 1995 1994 . 882,544 882,258 22,455 22.455 1996 1995 935,813 959,556 , 24,141 24,760 1997 1996 992,796 1,001,788 26,362 - 26,601 1998 1997 1,061,983 1,061,983 27,701 27,701 1999 1998 1,127,761 1,149,603 31,494 32,104 2000 1999 1,178,806 1,216,629 29,756 33,069 2001 2000 1,276,337 1 ,284,253 40,568 37,163 Source: Seminole County Property Appraiser's Office . . . . . . . . . . . . . . . . . . . . . ,. . '. . . . . . . . . . . . . . . . . . . . ,CITY OF WINTER SPRINGS, FLORIDA ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY NET OF EXEMPTIONS Last Ten Fiscal Years (Amounts Expressed in Thousands) 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ratio of Total Assessed Exemptions Totals to Total Real and Personal Assessed Estimated Estimated Property Value Actual Value Actual Value $ 171,051 $ 636,038 $ 806,887 78,83% 177 ,446 645,587 822,810 78.46% 186,417 665,671 851,849 78,14% 196,599 708,400 904,713 78.30% 211,837 748,117 9.84,316 76,00% 220,230 , 798,928 1,028,389 ' 77.69% 235,565 854,119 1,089,684 78,38% 253,253 906,002 1,181,707 76.67% 238,9'90 972,981 1,249,699 77 .86% 251,515 1,065,390 1,321,416 80.62% .. ., 88 ... CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years Seminole St. John's City of County River Water Fiscal Winter Seminole School Management Year Springs County Board District 1992 3,6153 5,6970 10.1690 0.3580 1993 ' 3,6153 5.4200 10.0890 0,3580 1994, 3.9221 5.3620 10,0710 0.4820 1995 3.7626 5.1640 10.0930 0.4820 1996 3,7023 5.1640 10.2910 0.4820 1997 3,6083 5.1640 10.2580 0.4820 1998 3,6000 5.1640 10.0360 0.4820 1999 3.5495 5.1580 9,9180 0.4820 2000 3.5495 4,9990 9.5410 0.4820 2001 3,5400 5.2197 9.1620 0.4620 Source: Seminole County Tax Collector's Office 89 Total . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,8393 19.4823 19.8371 19.5016 19.6393 19.5123 19.2820 19.1075 18,5715 18,3837 . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Special Special Tax Assessments Fiscal Assessments Year Billings Year Collect~d (1) Oak Forest TLBD Total Oak Forest TLBD Total 1999 $ $ 169,628 (2) $ 169,626 1999 $ $153,378 (3) $ 153,375 2000 59,714 (4) 59,710 2000 79,486 163,221 242,704 2001 59,288 (2) 169,287 228,573 2001 61,944 1,588 63,532 (1) - includes prepayments and foreclosures (2) - first billing year (3) - represents prepayments only (4) - not assessed Special Assessment Debt Issued: .. ... .-. ... - - - - - - - - - Oak Forest TLBD June 2000 May 2001 -- - -- - - - -- - - - 90 91 . . . . . . . '. . . '. . . . . . . . . . ,. . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER, SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2001 Neither the City of Winter Springs Charter or Code nor the Florida State Statutes limits the amount of debt the City of Winter Springs can issue; . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT September 30, 2001 Juri~diction Net General ,Obligation ' Debt OlJt~tanding Applicable To City Of Winter Spring~ Percent (1) Amount Seminole County $14,630,000 Seminole County School Board 3(> 595,000 Total Overlapping Debt 51,225,000 Total Direct Debt (1) Total Direct and Overlapping Debt $f)1 ??f) 000 6.85% 6,85% $1,002,155 2 q06,75e 3,508,913 $~ f)OR q1 ~ (1) The City of Winter Springs does not currer:ltly have any general obligation debt that is being repaid through general property taxes, Source: Seminole County Finance Department Seminol~ County Public School Board .. ... .-. ... .. - - - - - -, -' - - - - - -- - - - - - -- :-. - 92 CITY OF WINTER SPRINGS, FLORIDA REVENUE BOND COVERAGE WATER AND SEWER BONDS Last Ten Fiscal Years Net Direct Available Fiscal Operating For Debt Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage 1992 $ 4,376,764 $ 2,075,965 ' $2,300,799 $35,000 $ 1,092,724 $1,127,724 2,04 ' , 1993 4,483,245 2,204,512 2,278,733 85,000 ' 1,295,491 1,380,491 1.65 1994 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 2,817,266 95,000 1,373,597 1,468,597 1.92 1996 5,269,291 2,336,777 2,932,514 415,000 1,358,416 1,773,416 1,65 1997 5,613,413 ' 2,517,191 3,096,222 435,000 1,346,020 1,781,020 1,74 1998 5,924,112 2,696,506 3,227,606 455,000 1,405,724 1,860,724 1,73 1999 6,999,692 3,312,000 3,687,692 710,000 1,436,131 2,146,131 1,72 2000 6,511,101 3,191,228 . 3,319,873 . 750,000 1,397,292 2,147,292 1,55 2001 6,493,205 3,438,641 3,054,564 930,000 1,383,337 2,313,337 1.32 (1) Revenues include investment income, connection fees, and other income (2) Direct operating expenses excludes depreciation and interest expense but includes operating transfers out 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . .. ., .. ., .. ... .-. ... - ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ., .-. - .-. ... - - - - .-. ... - - - - - - - - - - CITY OF WINTER SPRINGS, FLORIDA DFMOGRAPHIC STATISTICS (2) (3) (1 ) School Unemployment Fi~cal Yaar Population Enrollmant Rate 1992 23,352 1961 7.0% 1993 24,008 3020 5,8% 1994 24,772 3268 5.4% 1995 25,673 3297 4.2% 1996 26,474 3390 3.3% 1997 ,27,466 3988 ' 3.2% 1998 28,404 5967 '2,6% 1999 29,220 5711 2.8% 2000* 31,088 5776 2.6% 2001 * 31 ,666 6421 3.5% (1) Source: East Central Florida Regional Planning Council (2) Source: Seminole County Public School Board (3) Source: U.S, Department of Labor * Unofficial 2001 Census population 94 CITY OF WINTER SPRINGS, FLORIDA PROPERTY VALUES AND CONSTRUCTION LAST TEN FISCAL YEARS (VALUES ARE IN THOUSANDS) Commercial Addftions/ Residential Construction (1) Construction (1) Alterations (1) Number of Units Single Multi Total Year Family Family Value Value Value, Value 1992 228 0 $ 24,512 $ 983 $ 1,801 $ 27,296 1993 301 0 38,410 1,260 3,818 43,488 1994 411 0 48,965 2,000 ,4,200 55,165 1995 333 44,425 1,200 3,555 49,180 . 1996 335 2 43,550 655 5,445 49,650 1997 327 0 50,428 449 3,603 54,480 1998 337 ' 56,760 1,331 4,410 62,501 1999 418 42 123,290 . ' 4,898 6,580 134,768 2000 285 45,773 6,967 1,189 53,929 2001 163 16 31,775 3,403 1,039 36,217 (1) Source: City of Winter Springs Building Department 95 . . . . . . . . . . . . . . - .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF TEN LARGEST TAXPAYERS T::Ixp::lYM 1, Golf Terrace, Ltd, 2, ,Florida Power Corp, 3. Courtney Springs LP 4, United Dominion Realty Trust 5. ZP No 56 LP 6, Hacienda Village Co-Op 7. Centex Homes 8, Time Warner Communications 9. BellSouth Communications 10, Winter Springs Golf LLC 'September 30, 2001 Type of BII!;inp.!;!; Taxable Assessed Valuation as of 2000 [::IX Rnll (1) Property rv]anagement Electric Utility Property Management Property Management Developer Property Management Builder Utilities Utilities Developer $ 22,870,330 12,219,303 , 11,895,230 7,569,350 5,145,472 4,862,071 4,415,889 3,668,561 3,532,890 2639,031 Total taxable assessed valuation of 10 largest taxpayers 78,818,127 Total taxable assessed valuation of other taxpayers 986572,219 Total taxable assessed valuation of all taxpayers $..1..O.6S :Nn Cl4R Source: Seminole County Property Appraiser's Office pp.rc'p.nt:'lge nf Tnt::ll T::IX::Ihlp. V::IIIlp. 2.15% 1,15% 1,12% 0.71% 0,48% 0,46% 0,41% 0,34% 0,33% ll.25% 7,40% ~ 1 nn 00% (1) The tax levy for this fiscal year ended September 30, 2001 is based on the 2000 assessed values. .. - .-. - .-. - - - - - - - - - - - - - - - - - - - - - 96 CITY OF WINTER SPRINGS MISCELLANEOUS STATISTICAL DATA Date ,of Incorporation City Charter Adopted Form of Government Commission Compos'ed of Areas of City Miles of Streets Fire Protection: Stations Firefighters and Officers Police Protection: Stations Sworn Officers Recreation and Culture: Number of Community Parks Number of NeighborhoodParks Number of Mini Parks City Water System: Number of customers , Daily Average Consumption Miles of Water Mains Plant Capacity-All Plants Deep wells Number of fire hydrants City Sewer System: Treatment Facility Charge Current Average Flow Miles of Sanitary Sewer Lines September 30, 2001 Building Permits Issued-Fiscal year 2001 City Em'ployees: Classified Seryice' Exempt 97 c. . . . . . . 1959 . . 1972 . Commission-City Manager . 5 Members . . 14,94 Square miles . 98.58 miles . . 2 . 41 . 1 . 54 . 5 . 5 . ,1 . 12,136 . 4,07 MGD 144,33 . 12 MGD . 7 882 . 4.212 MGD . 2.179 MGD . 100.2 . 457 . . 199 . 46 '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REPORTS ON INTERNAL CONTROL AND COMPLIANCE . . . . .. . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . This page intentionally left blank. . . . . . . . . . . . . . . . . . . .' . . . . . . . . . . . .-. ... .-. ... - ... - - - - - - .-. - - - - - - ... - - - - - - V1J IVICDIRlViIT DAVIS PUCKETT REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AVDlTlNG STANDARDS The Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the general purpose financial statements of the City of Winter Springs, Florida as of and for the year ended September 30, 2001, and have issued our report thereon dated December 28, 2001., 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 of Winter Springs, Florida's general purpose financial statements are free of material misstatement, we performed 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 npt express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. However, we nqted certain immaterial instances of. noncompliance that we have reported to management of City of Winter Springs, Florida, in a separate letter dated December 28, 2001. Internal Control Over Financial Reporting - In planning and performing our audit, we considered the City of Winter Springs, Florida's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose 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 material weaknesses, 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 general purpose 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 involving the internal control over financial reporting that we have reported to the management of City of Winter Springs, Florida, in a separate letter dated December 28, 2001. MCDIRMIT DAV1S PUCKETT & COMPANY, LLC C'E R T IF rED PUB Lie Ace 0 U N TAN T SAN D CON S U L TAN T S 605 E, ROBINSON STREET, SUITE 635. ORLANDO, FLORIDA 32801 TELEPHONE 407-843-5406. FAx 407-649-9339. EMAIL: INFO@MDPCPA,COM , , MEMBERS: Pi{[VA n: COMPANIES PRACTICE SECTION' AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' FLORIDA INSTIruTE Or CERTIFIED PUBLlC ACCOUNTANTS 98 " This report is intended solely for the information and use of ma-nagement, the City Commission, and the Auditor General of the State of Florida and is not intended to be, and should not be used by anyone other than these specified parties. .-. ., . . . . . .' . . . .' . . - ~~~f~/U~ McDIRMIT DAVIS PUCKETT & COMPANY, LLC December 28,2001 99 . . . . . . . . . . .' . . . . . . . . . . -,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHFDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE ,Year Ended 'September 3q, 2001 State Agency/ State Project CSFA No Contract No Expenditures Florida Department of Environmental Protection: Florida Re,creation Development Assistance Program 37.017 F1250 $47~ 4?1 Note: This Schedule of Expe,nditures of State Financial Assistance is presented on the accrual basis of accounting in accordance with requirements of Section 215.97, Florida 'Statutes. .-. ... .-. - - - - - - - - - - - -- - - - - - -- 100 '" . . . . . . . . . . . . . . . . . '. . . . . . . . . . . '. . '. . . . . . . . . . . . '. This page intentionally left blank. . . . . . . . . . .' . . . ., . . . . . . . . . . . . . .-. ... .. ... - - - - - - - - - - - - - - - - - - - - - - - - - ~ l\;j[CDIRlVIIT DAVIS PUCKETT INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER COMPLIANCE APPLICABLE TO THE MAJOR STATE PROJECT The Honorable Mayor and City Commissioners' City of Winter Springs, Florida Winter Spri~gs, Florida Compliance We have audited the compliance of the, City of Winter Springs, Florida with the types of compliance requirements described, in the Executive Office of the Governor's State Projects Compliance Supplement, that are applicable to the major state project for the year ended September 30, 2001, The City of Winter Springs' major state project is identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major state project is the responsibility of the City of Winter Springs, Florida management Our responsibility is to express an opinion on the City of Winter Springs; Florida compliance based on our audit. We conducted our 'audit of compliance in accordance with auditing 'standards generally accepted in the United States of America; the standards applicable to financial audits contained in Governm~nt Auditing Standards, issued by the Comptroller General of the United States; and Chapter ,10.650, Rules of the Auditor General. Those standards, and Chapter 10.650, Rules of the Auditor General require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on 'a major state project occurred, An audit includes examining, on a test basis, evidence abo'ut City of Winter Springs, Florida compliance with those requirements and performing such other procedures as we considered necessary in' the circumstances. We believe that our audit provides a reasonable basis for our opinion, Our audit does not provide a legal determination on the City of Winter Springs, Florida compliance with those requirements. In our opinion, the City of Winter Springs, Florida, complied, in all material respects, with the requirements referred to above that are applicable to its major state project for the year ended September 30,2001. MCDIRMIT DAVIS PUCKETT & COMPANY, LLC C E R T I FIE D PUB LI CAe C 0 U N TAN T SAN D CON S U L TAN T S 605 E. ROBINSON STREET, SUITE 635. ORLANDO, FLOIUDA 32801 TELEPHONE 407-843-5406' FAX 407-649-9339' EMAIL: INFO@MDPCPA,COM MeMBERS: PRIVATE CO~,IPANIES PR.ACTlCE SECTION' AMERICAN INSTITUTE OF CEflTlFlcO l'uBLlC ACCOUNTANTS' FLORIOA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 101 ,Internal Control Over Compliance , The management of the City of Winter Springs, Florida is responsible for establishing and maintaining effective 'internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs and state projects. In planning and performing oW audit, we considered the City of Winter Springs, Florida internal control over, compliance with requirements that could have a direct and material effect on a major state project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with Chapter 10.650 Rules of the Auditor General. Our consideration of' the internal control over compliance would not' necessarily disclose all matters in the internal control that .might be material weaknesses, 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 noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major state program 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 compliance and its operation that we consider to be material weaknesses.' ' This report is intended solely for the information and use of management, the City, the Auditor General of the State of Florida and state awarding agencies and is not intended to be and should not be used by anyone other than these specified parties, ~~~f~/a~ December 28,2001 ' 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -,~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS- STATE PROJECT Year Ended September 30, 2001 A. Summary of Auditor's Findings 1, The auditor's report expresses an unqualified opinion on the general purpose financial statements of the City of Winter Springs, Florida. 2. No instances of noncompliance material to the financial state'ments of the City of Winter Springs, Florida were disclosed du'ring the audit 3. The auditor's report on compliance for the major state' project for, the City of Winter Springs, Florida, expresses an unqualified opinion. 4. The program/project tested as major program/project included the following: Stah~ Project Florida Department of Environmental Protection - Florida Recreation Development Assistance Program State CSFA No 37.017 5. The threshold for distinguishing Type A and Type B programs/projects was $300,000 for major state projects, .. ., .. ., .. ., ... ... .. ., - - .-. - .-. - - ... .-. - - - - - - - 103 . . . . . '. . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . , This page intentionally left blank. I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. ,~MCDIRMIT D'AVIS PUCKETT MANAGEMENT COMMENTS Honorable Mayor and City Commission City of Winter Springs, Florida In connection with our audit of the general purpose financial statements of the City of Winter Springs, Florida, for the year ended September 30, 2001, we are submitting for your consideration the accompanying recommendations designed to help you improve the internal control structure and achieve operational efficiencies. Our comments deal exclusively with weaknesses noted in operational, accounting, and recordkeeping systems and procedures, and should not be regarded as reflecting on the integrity or capabilities of anyone in your organization. Our comments reflect our desire to be of continuing assistan'ce to management. Since the comments and observations contained in this letter are a by-product of the audit of financial . statements, the cost justification and other aspects of our suggestions have not been 'fully evaluated; these evaluations should be made by management Therefore, we recognize that, after consideration, certain suggestions and recommendations may not be practical to implement. We have also provided comments as required 'by the Rules of the Auditor General of the State of Florida. ' We appreciate the, cooperation we have received from the City's personnel in connection with developing these, recommendations. We appreciate the opportunity to have been of service to you. Should you have any questions about our recommendations, this letter, or other matters, please contact us at your convenience. . ~~~,,~/a~ McDIRMIT DAVIS PUCKETT & COMPANY, LLC December 28, 2001 MCDIRMIT DAVIS PUCKETT & COMPANY, LLC CERTIFIED PUBLlCACCOUNTANTS AND CONSULTANTS 605 E, ROBINSON STREET, SUITE 635' ORLANDO, FLORlDA 32801 TELEPHONE 407,,843-5406, . FAX 407,,649-9339 . EMAIL: lNfO@MDPCPA,COM MEMBERS: PRIVATE COMPAl'lES PRACTICE SECTiON' AMERiCAN INST1TlJrE Of CERTIFIED PUBLIC ACCOUNTANTS' FLOlUDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 104 Management Comm,ents City of. W'inter Springs, Florida December 28,2001 Page Two A 'Status of Prior Year Comments 1. Bank Reconciliations' Bank reconciliations for the General Fund operating and payroll accounts were not prepared on a timely basis. Recommendation ' It is important to prepare timely bank reconciliations in order to maintain adequate cash controls. Corrective Action Bank reconciliations were prepared on a timely bqsis during 2001, No further , recommendation is considered necessary. ' 2. Pooled Cash Accounts The City maintains approximately 50 bank accounts which requires many hours . of staff time on a monthly basis. Recommendation We recommend that the City convert to pooled cash accounts which will reduce the staff time in bank reconciliations and bank account transfers. Corrective Action City plans to convert to pooled cash in 2002. No further recommendation is ' needed. 3. Investment Policy Florida Statutes Section 218.415 reVISions are effective October 1, 2000 and require the certified public accountants conducting audits shall report, as part of the audit; whether or not the unit of local government has complied with t~e statute. The revisions in Section 218.415 also require that the local government official responsible for making investment decisions must compete 8 hours of continuing education courses of study related to investments. 105 . . . . '. . . . . . . . . . '. . . . . . . '. . . . . . . . . . .. . '. '. . a ., . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ... . .-. ... .. ... .-. ... - ... .-. ... .-. - - - - - Management Comments City of Winter Springs, Florida December 28, 2001 Page Three Recommendation We recommend that the City review its existing investment policy and revise it so that it includes everything required by Florida Statutes Section 218,4 15. Corrective Action The City adopted a new investment policy in 2001 that complies with Florida Statutes, No further recommendation is considered necessary. 4. Budget Monitoring There is no statutory requirement that municipalities budget for all funds; however, in an effort to achieve an enhanced level of budgetary control, the City has elected to budget for all of its funds. Because the City Charter does say that budgets will be prepared for all funds, we ,must report actual expenditures in excess of budgeted expenditures, even if they are not material to the financial statements. The following funds had actual expenditures in excess of budgeted expenditures for fiscal year ending September'30, 2000: SpeCial Revenue Funds - Solid Waste Fund, Fire Impact Fee Fund, TLBD Maintenance Fund, and Oak Forest Maintenance Fund. Debt Service Funds - 1999 Debt Service Fund and Oak Forest Debt Service Fund. Capital Projects Funds - 1997 Construction Fund and the TLBD Improvements Fund. Recommendation While the City maintains a high level of appropriate budgetary control through the use of the encumbrance system, we recommend the City ensure that the budget is amended for allocations of all expenses including such things as bank service charges and those charges resulting from year-end close Corrective Action We ,noted some improvement made in budget monitoring, however there were still a few funds where actual expenditures exceeded budgeted expenditure's for the year ending September 30, 2001, 106 Management Comments Winter Springs, Florida December 28,2001 Page Four 5, Customer Utility Deposits The cash account maintained for customer utility deposits has a balance.which is approximately $400,000 higher than the customer geposit liability account. This difference results because customer deposits are refunded from the operating cash account and not the customer utility deposits account Recommendation If the City, is going to maintain a separate cash account for customer deposits, then the balance should be reconciled to the liability account However, we recommend that the City delete the separate account since it is not required Corrective Action The City plans to delete the separate account when they convert to pooled cash in 2002. No further recommendation is considered necessary. 6. Payroll Cut-off Payroll cut-off is Wedne'sday, 'the day before payday. This means that , department heads must guess on the hours worked on Wednesday. Recommendation We recommend moving the cut- off peri09 back to e,liminate potential problems noted above plus allow more time for the payroll department to process the payroll. Corrective Action The City moved the payroll cut-off back one day to allow more time to process ,payroll. No further recommendation is considered necessary. ' B, Current Year Comments 1. Budget Monitoring Actual expenditures were in excess of budgeted expenditures for the Public Service Tax Special Revenue Fund and the Oa,k Forest Debt Service Fund. In addition, appropriations for the Oak Forest Maintenance 'Special Revenue Fund were in excess of anticipated revenue and prior years' fund balance. 107 . . . . . . . . . ,. . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ... - ., - ... .-. - .-. ... - ... - - - - - - - - Management Comments Winter Springs, Florida, December 28,2001 Page Five Recommendation During 2001, there was a lot of improvement made in budget monitoring and we continue to recommend that the City carefully monitor the budget and make amendments if necessary. ' 2. Utility Billing System The City implemented a new utility billing system during the current year. There have been some problems with the system and also with staff understanding how to operate the system. For example, at year end there were negative ,balances on individual ,accounts receivable balances. Recommendation We recommend that the City work with MUNIS to resolve problems and get proper training for employees. C. Comments Required by the Rules of the Auditor General 1. The financial report filed with the Department of' Banking and Finance pursuant to Section 218.32(1)(b), Florida Statutes, is in agreement in all material respects with the annual financial audit report for the same period. 2. The City is not, or during the fiscal year was not, in a state of financial emergency as a consequence of conditions described in Section 218.503(1) Florida Statutes. 3. The City of Winter Springs, Florida was created under State of Florida law in 1923. There were no component units identified by the City. 4, The City of Winter Springs, Florida has complied with Section 218,415, Florida Statutes, regarding the investment of public funds. ' 108 . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . '. . . . '. This pag~ intentionally left blank. ' . . . . . . . . . . . . . . . . . CITY OF WINTER SPRINGS, FLORIDA Ronald W. McLemore City Manager 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 December 28,2001 McDirmitt, Davis, Puckett & Company, P.A. 605 East Robinson Street, Suite 635 Orlando, Florida 32801 Dear Sir or Madam: - . . . . . . . . . . . . . . . . . . . . . . . Your management comments related to fiscal year ended September 30, 2001 were well received by both the City Manager and the Finance Department. The comments represent opportunities for improvement, which will be pursued in fiscal year 2002. Below are the'responses to your management comments as required by the Rules of the Auditor General of the State of Florida. Budget Monitoring We concur with the recommendation. Continued evaluation and refinement of processes including the budget process is a goal ofthe Finance Department. Utility Billing System We concur with the recommendation, Additional training for staff is scheduled. Resources will be devoted to gaining an enhanced understanding of the computer operations of our new Utility Billing System. Sincerely, /~~4?/ 1/rt~;~ Ronald W. McLemore City Manager C7(s>- C ~~ Louise C. Frangoul, CPA Finance Director .-. ... .-. ... .-. -