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HomeMy WebLinkAbout2011 03 28 Regular 602 Acceptance Of Comprehensive Annual Financial Report FY Ended 9/30/10 COMMISSION AGENDA AWARDS & PRESENTATIONS INFORMATIONAL ITEM 602 PUBLIC HEARING REGULAR X MGR /DEPT March 28, 2011 Regular Meeting Authorization REQUEST: The City Manager Is Requesting City Commission Acceptance Of The Comprehensive Annual Financial Report (CAFR) As Presented For The Fiscal Year Ended September 30, 2010. SYNOPIS: The presentation of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2010 by the auditors, McDirmit Davis & Company, LLC. CONSIDERATIONS: The CAFR is prepared to give the City Commission and the citizens a greater understanding of the The financial statements received an unqualified opinion by the auditors. Additionally, the 2010 CAFR will be submitted to the Government Finance Officers Association for participation in the Certificate of Achievement Award as we believe it continues to conform to the program requirements. FISCAL IMPACT: None COMMUNICATION EFFORTS: This Agenda Item has been forwarded to the Mayor and Commission; City Manager; City Attorney/Staff; placed in Press Packets; placed in the City Hall (Lobby) City Commission Meeting information related to this Agenda Item has been sent to media/press representative who have requested Agendas/Agenda Item information, all who have requested Agendas/Agenda Item information, Department Directors; and also posted outside City Hall: posted inside City Hall with additional copies available for the general public; and posted at five (5) different locations around the City. Furthermore, within a week of acceptance, the 2010 CAFR will be posted to the website within the Finance and Administrative Services section for Budget and Financial Documents along with prior year CAFRs. RECOMMENDATIONS: It is recommended that the Commission accept the Comprehensive Annual Financial Report (CAFR) As Presented For The Fiscal Year Ended September 30, 2010. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/10 including the audited financial statements and the audit opinion City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2010 1 ' Income 1959 • R Prepared by: Finance and Administrative Services Department This pave intentionally left blankL U * � �LOR10.% INTRODUCTORY SECTION This section contains the following subsections: ■ Table of Contents ■ Letter of Transmittal • GFOA Certificate of Achievement ■ List of Principal Officials • Organizational Chart This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2010 Page I. Introductory Section: Table of Contents i -iii Letter of Transmittal iv -vii GFOA Certificate of Achievement viii List of Principal Officials ix Organizational Chart x II. Financial Section: Independent Auditor's Report 1 -2 Management's Discussion and Analysis 3 -15 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements Balance Sheet - Governmental Funds 18 -19 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 20 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 21 -22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund 24 -25 Public and Communications Service Tax Special Revenue Fund 26 Road Improvements Special Revenue Fund 27 Solid Waste /Recycling Special Revenue Fund 28 Statement of Net Assets - Proprietary Funds 29 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 30 Statement of Cash Flows - Proprietary Funds 31 -32 Statement of Fiduciary Net Assets - Fiduciary Funds 33 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 34 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2010 Page II. Financial Section - Continued: Notes to Financial Statements 35 -72 Required Supplementary Information 73 -74 Combining and Individual Fund Statements and Schedules: Major Governmental Funds: Schedule of Revenues and Expenditures and Changes in Fund Balance - Budget and Actual: TLBD Debt Service Fund 75 Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds 76 -84 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 85 -92 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds 93 -111 Debt Service Funds 112 -117 Capital Projects Funds 118 -121 III. Statistical Section: Financial Trends Net Assets by Component 122 Changes in Net Assets 123 -124 Governmental Activities Tax Revenues by Source 125 Fund Balances of Governmental Funds 126 Changes in Fund Balances of Governmental Funds 127 -128 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 129 Property Tax Rates, Direct and Overlapping Governments 130 Special Assessment Billings and Collections 131 Principal Property Taxpayers 132 Property Tax Levies and Collections 133 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2010 IV. Other Reports: Report on Internal Control over Financial Reporting and on Compliance and Page III. Statistical Section - Continued: Debt Capacity 146 -147 Legal Debt Margin 134 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 135 Ratio of Outstanding Debt by Type 136 Direct and Overlapping Governmental Activities Debt 137 Pledged- Revenue Coverage 138 -139 Demographic and Economic Information 152 Demographic and Economic Statistics 140 Principal Employers 141 Operating Information 159 -160 Budgeted Full -time Equivalent City Government Employees by Function 142 Operating Indicators by Function 143 -144 Capital Asset Statistics by Function 145 IV. Other Reports: Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 146 -147 Report on Compliance with Requirements Applicable to Each Major Federal Program and Internal Control over Compliance in Accordance with OMB Circular A -133 148 -149 Schedule of Expenditures of Federal Awards 150 Schedule of Expenditures of State Financial Assistance 151 Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance 152 Schedule of Findings and Questioned Costs 153 Management Letter 154 -158 Management Response 159 -160 Communication with Those Charged with Governance 161 -162 Affidavit of Impact Fee Compliance 163 This pave intentionally left blankL U * � �LOR10.% v hwxpom CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708 -2799 Tefephone (407) 327 -1800 March 21, 2011 To the Honorable Mayor, City Commission and Citizens of the City of winter Springs, Florida: State law requires that all general- purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and that they be audited in accordance with generally accepted auditing standards (GARS) by a firm of licensed certified public accountants. Pursuant to that requirement, it is with great pleasure that we present to you the City of Winter Springs, Florida Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2010. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the City of Winter Springs' comprehensive framework of intemai controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, to the best of our knowledge and belief, we assert that this financial report is complete and reliable in all material respects. The City of winter Springs' financial statements have been audited by McDirmit, Davis & Company, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2010 are free of material misstatement. The independent audit involved examination of evidence, on a test basis, supporting the amounts and disclosures in the financial statements; assessment of the accounting principles used and significant estimates made by management; and an evaluation of the overall financial statement presentation. Based upon the audit, the independent auditor concluded that reasonable basis existed to render an unqualified opinion that the City of winter Springs' financial statements for the fiscal year ended September 30, 2010 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The City of Winter Springs' Management's Discussion and Analysis (MD&A) can be found immediately following the report of the independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The City of winter Springs, incorporated in 1959, is located in Seminole County, which is a part of the greater Orlando metropolitan area in East Central Florida. This area is one of the fastest growing iv areas in the country. The City currently has a land area of 14.81 square miles and a population of approximately 34,149. The City operates according to a Council /Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four -year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City's Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day - today operations of the government, and for hiring the directors of the various departments. The City of winter Springs provides a full range of services, including police protection; the construction and maintenance of highways, streets and other infrastructure; and recreational activities and cultural events. The City maintains both a Water and Sewer Utility, a Stormwater Utility, and a Development Services Fund, which function, in essence, as departments of the City of winter Springs and therefore have been included as an integral part of the City of Winter Springs' financial statements. The annual budget serves as the foundation for the City of winter Springs' financial planning and control. All departments of the City of Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager then uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Commission for review on or before July 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City's fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget -to- actual comparisons are provided in this report for each individual governmental fund. For the General Fund, the Public and Communications Service Tax Fund, the Road Improvements Fund and the Solid Waste /Recycling Fund, these comparisons are presented on pages 24-28 as part of the basic financial statements for the governmental funds. For other governmental funds these comparisons are presented in the governmental fund subsection of this report which starts on page 75. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the city of winter Springs operates. Local economy. The City of Winter Springs is primarily a retail, office and residential area with a small amount of light industry and commercial business. Approximately 88% of our tax base is comprised of residential properties. Per the DR 422 (Certificate of Final Taxable Value) and relative to the 2009 -2010 fiscal year (tax year 2009), the gross taxable value reflects a decrease of 10% from the prior year but an increase of 70% since fiscal year 2001. The operating millage rate remained unchanged at 2.4714 mills, as result of reducing expenditures and the success of the implementation of Zero Based Budgeting. During fiscal year 2010 -2011 (tax year 2010), despite declining property values, the city was able to maintain constant operating and voted debt millage rates at 2.4714 and 0.1100 mills, respectively. The City's population has increased 8% from that of ten years ago. Local indicators are still reflective of a slow real estate market, low construction activity, -high foreclosure and unemployment rates and lA decreased spending. This economic downturn has had an impact on revenue at both the state and local level. At the local level, revenues such as review and permit fees, investment income and. state have begun to rebound slowly. The City has mitigated the effect of reduced revenues with reduced expenditures, constrained hiring and/or project delays and the use of reserves for capital. Thus far into the 2011 fiscal year, there have been no mid -year adjustments to those revenues which the city receives from the state. The best approach for balancing the state's 2011 budget is currently ongoing in the legislature. Winter Springs can boast about the great neighborhood schools. For the 09110 school year, 92 %of the elementary, middle and high schools were awarded an A on State FIAT score results. Nearby Seminole State College and University of Central Florida offer our community an affordable and excellent higher education choice. Winter Springs has partnered with the UCF Incubator to look at ways to make a positive investment into our business community. We have also partnered with Seminole county in the Community Redevelopment Agency to build out neighborhood improvements at Shepherd Road, part of the 17 -92 corridor redevelopment. This project is funded through a waiver of ad valorem taxes by way of repayment of ad valorem paid to the county. Longterm financial planning. The City Commission updated and adopted a 5 -year capital Improvements Plan (GIP) on September 28, 2009 for fiscal years 2010 through 2015. The GIP is currently being evaluated and updated through Fiscal Year 2016 with anticipated completion by summer 2010. The CIP is a multi -year prioritized schedule of improvements that lists each capital improvement by the year it is intended to be purchased or commenced; the amount to be spent per year; and the method of financing such improvement. Each year during the annual budget process the CIP is reviewed to ensure incorporation of all necessary capital improvements. It should be noted; however, that the CIP is not a static document but a flexible and dynamic one that may change to reflect changing priorities, opportunities, costs, or financing approach. Relevant Financial Policies. Implementation of Zero -Based Budgeting represented a major change in the fiscal year 2010 model and continued into fiscal year 2011 -as compared to incremental budgeting used in prior fiscal years. There are three fiscal policies that are utilized when preparing and adopting the City's annual budget. The first policy is to maintain an Unreserved General Fund balance not less than 25% of the total operating expenses of the General Fund, excluding capital outlay and debt. By a super - majority vote of the Commission, supplemental appropriation from Unreserved General Fund balance may be authorized by the Commission for a General Fund purpose which may potentially reduce the Unreserved General Fund balance which would be restored to, at least, the minimum in the followings year's budget. This fund balance philosophy carries over to the Water and Sewer Utility, Stormwater Utility and Development Services. Some funds such as debt service exist for very specific purposes; as such, the potential for unforeseen expenditures is very low. Consequently, it is not necessary for all funds to be constrained by this policy. In such case, the budget serves as the sole constraint. The second fiscal policy is that sufficient recurring revenues exist to pay for all recurring costs, thus avoiding the use of non - recurring revenues and fund balance to fund recurring costs. The final fiscal policy is that sufficient recurring and non - recurring revenues are available to fund non - recurring costs. Major Initiatives. During fiscal year 2011, as approved during the budget process, the city anticipates the continued efforts for improving our City services and amenities by means of the following projects. • Replacement of Public Safety vehicles to include 10 patrol cars with dashboard cameras and 2 motorcycles at a cost of $330,000; • Addition of Public Safety new tactical equipment including surveillance equipment and precision tactical weapon city Hail at a cost of $1 5,000; vi * Replacement of utilities meter reading equipment including systems upgrade to better service our customers through the use of electronic services and technology, at a cost of $37,000; * Security monitoring equipment at our senior center at a cost of $12,000; and other park maintenance equipment at a cost of $29,000; * Information services and other governmental capital technology expenditures totaling $81,000; * continued development of Magnolia Park, a Town Center outdoor amphitheatre totaling $1,180,000; • New road construction, road improvements and resurfacing and other transportation projects totaling approximately $2,800,000; * Storrnwater treatment facility at Solary Canal and other improvements to meet state water quality regulations and improve efficiencies at a cost of approximately $1,300,000; * completion of the Utility /Public Works Facility — Administration building $852,000; * Improvements to water treatment facilities, wells, mains and sewer lines in order to meet conservation goals and increase efficiencies at a cost of $950,000; * construction of the Oak Forest water reclamation facility to augment the production and capacity to sell reclaimed water at a cost of $4,267,000; Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs for its CAFR for the fiscal year ended September 30, 2009. This was the tenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently- organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement program requirements and will be submitting it to the GFOA to determine its eligibility for another fiscal year. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. We would like to express our appreciation to all members the department who assisted and contributed to its preparation. Other City departments, although not extensively involved in year -end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult. A special thank you to Kaley Gamer who assisted in the design of our report cover. Appreciation must also be expressed to the City's auditors whose suggestions and attention to detail enhanced the quality of this report. In closing, we would also like to express appreciation to the Mayor and the City commission for their support and for maintaining high standards of professionalism in management of the City of Winter Springs' finances. Respectfully submift , Z evinL. S 'th City Manager Shawn D. oyle Finance and Admi strative Services Director vii I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Winter Springs Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2009 Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United Mates and Canada to government units and public employee retirement systems whose comprehensive annual financial reports CAFRs achieve the highest standards in government accounting and financial reporting. � �SIAT� �� �� President Ae Executive Director Vii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2010 ELECTED OFFICIALS MAYOR John F. Bush COMMISSIONER Joanne M. Krebs DEPUTY -MAYOR / COMMISSIONER Rick Brown COMMISSIONER Gary Bonner COMMISSIONER Sally M. McGinnis COMMISSIONER Jean Hovey CITY MANAGER Kevin L. Smith CITY CLERK Andrea Lorenzo - Luaces LEGAL COUNSEL Anthony Garganese Brown, Garganese, Weiss & D'Agresta, P.A. DEPARTMENT DIRECTORS COMMUNITY DEVELOPMENT Randy Stevenson FINANCE /ADMIN SERVICES Shawn Boyle INFORMATION SERVICES Joanne Dalka PARKS AND RECREATION Chuck Pula POLICE CHIEF Kevin Brunelle UTILITY /PUBLIC WORKS Kipton Lockcuff ix This page intentionally left blank, /�4 F� Z53 4 ,'�K �Zo o� CITY OF WINTER SPRINGS ORGANIZATIONAL CHART Citizens of Winter p ri rigs Administration Administration Administration Administration Administration Administration Accounting Security Stormwater Records Civic/ Senior Comp Planning Debt Mgmt. Records Mgmt. Transportation Communications Parks /Field Mnt. Land Mgmt. Teter Svc. GIS Engineering Patrol Athletics Rec. Permit & Insp. Budgeting IT Maintenance Water Mgmt Investigations Programs Urban Beautification HR IT Development Water/Wastewater Code Enforcement Concession Svc, Risk Mgmt. Purchasing Treasury Mgmt. The City M a n alter is a p pointed by the Comm ission. The City Clerk is appointed by the Mayor with ratification of the City Commission and works under the direction of the City Manager. • The City Attorney is appointed by the Mayor with ratification of the City Commission and works under the direction of the City Commission. Advisory Boa rds are a ppointed by the Mayor and the City Comm ission a nd work under the d i re do n of th e City Commission. x This pave intentionally left blankL U * � �LOR10.% FINANCIAL SECTION This pave intentionally left blankL U * � �LOR10.% MCDIRMIT' /// DAVIS CERTIFIED PllELTC ACC011N'TANTS AND ADVISORS INDEPENDENT U DITO 'S REPORT T Honorable Mayor and City Com missioners City of Winter Springs, Florida We have and ited the a ccompanying financial state ments of the g activities, the business-type activitie ea ch major fund, and the aggregate rem aining fund information of the C ity of Winter Springs, Florida, as of and for the year e n ded s pt her 30, 2010, which collectively comprise the City's basic financial statements as listed in the table of c onte nts. Thes fina s tatements a the responsibi of the City's ma nagement. u r responsi is to ex press an o on these financia state ments based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applica to financial audits contained in G ovemment Auditing Standards, issued by the Comptroller General of the United states. Those standard require that we plan and pe rform the audit to obtain reaso nable ass uran about whether the financial statements are free o f materia misstatement. An audit incl udes minin , on a test basis, evide s upporti ng the amounts and disclosu in the financial statements. A n audit also includes assessing the accounting pri nciples used and significant esti mates rude b man ag e ment, a we ll as evaluating the overall financial stateme presentation. We believe that our audit provides a reaso n a ble basis for ou r opinions. I n o ur o pi n ion the fi na not a I state me nts referred to above present fa irl , i n a II materia I respects, the respective financia position of the governme activities, the busi activities, each major fund, and the aggregate remaining fund Information of the C ity of Winter Springs, Florida, a of S eptember 3 0, 20 10 and the respective cha nges in fi position and, where applicable, cash flows thereof and the respective budgetary comparisons for the general fund, the public and communications service tax special revenue fund, road improvement special revenue fund, and the solid waste/recycling special revenue fund for the year th en ended in confo with ac counting pri gen r l ly accepted in the United States of America. MCDIRMTT DAvis & COMPANY, LLC 60 E RoBINSON S SUITE 6 0 OR LANDO., RnR IDA 3280 * rELEPHONF- 407-84 * FAx 407-049-9339 * E MAIL: : 1NF0 dMCD1 RM ITDAV' IS.0 0M NTF- Sill1:R';: PR IVATa: COMPANI PRACTE 4 5 F( " i'II �ti * ANA1:R ICAN INSTITI."TF. OF C FRT IFIF•. T) Pi Ft1.IC M'f OUZN'F-1NTS ■ F1.0RIDA IXST1TUT1= OF C I:RTIFIE =f] PUF1IK AC COUN - TANTS In accordance with Government Auditing Standards, we have also issued a report dated February 23, 2011 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 agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit preformed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the pension and other postemployment benefits disclosures on pages 3 through 15 and 73 though 74 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's discussion responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Winter Springs, Florida's financial statements as a whole. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A -133 and Audits of States, Local Governments, and Non - Profit Organizations, and is also not a required part of the basic financial statements of the City of Winter Springs, Florida. The combining and individual nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and related directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. dab r February 23, 2011 2 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Winter Springs we offer readers of the City of Winter Springs' financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2010. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal which can be found on pages iv - vii of this report. Financial Highlights • The assets of the City of Winter Springs exceeded its liabilities at the close of the most recent fiscal year by $86,229,927 (net assets). Of this amount, $ 17 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $4,480,522 or 5 %. • As of the close of the current fiscal year, the City of Winter Springs' governmental funds reported combined ending fund balances of $19,994,959. Approximately 93% of this total amount, $18,600,496, is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, unreserved fund balance for the general fund was $8,274,850, or 52% of total general fund expenditures. • The City of Winter Springs' total debt decreased by $2 (9 %) during the current fiscal year. Principal payments were made in the amount of $3,010,897. Overview of the Financial Statements The financial statements focus on both the City as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year -to -year or government -to- government) and enhance the City's accountability. This discussion and analysis are intended to serve as an introduction to the City of Winter Springs' basic financial statements, which are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs' finances, in a manner similar to a private- sector business. The Statement of Net Assets presents information on all of the City of Winter Springs' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Winter Springs is improving or declining. The Statement of Activities presents information showing how the government's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, 3 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Overview of the Financial Statements (Continued) Government -wide financial statements. (Continued) revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of Winter Springs that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Winter Springs include general government, public safety, physical environment and culture and recreation. The business -type activities of the City of Winter Springs include a Water and Sewer Utility, Stormwater Utility and Development Services. The government -wide financial statements include only the City of Winter Springs itself (known as the primary government). The City of Winter Springs had no component units. The Water and Sewer Utility, the Stormwater utility, and Development Services function as departments of the City of Winter Springs, and therefore, have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 16 -17 of this report Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Winter Springs maintains 40 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Public and Communications Service Tax Special Revenue Fund, Road Improvements Special Revenue Fund, Solid Waste /Recycling Special Revenue Fund, and TLBD Debt Service Fund, all five of which are considered to be major funds. Data from the other 35 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds in provided in the form of combining statements elsewhere in this report. 4 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Overview of the Financial Statements (Continued) Governmental Funds. (Continued) The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have been provided for the General Fund, Public and Communications Service Tax Special Revenue Fund, Road Improvements Special Revenue Fund, and Solid Waste /Recycling Special Revenue Fund to demonstrate compliance with this budget on pages 24 -28. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund and the nonmajor funds on pages 75 and 93 -121. The basic governmental fund financial statements can be found on pages 18 -23 of this report. Proprietary funds. The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility and Development Services department. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility, and Development Services. The basic proprietary fund financial statements can be found on pages 29 -32 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Winter Springs' own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 33- 34 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 35 -72 of this report. Required Supplementary Information (RSI). RSI can be found on pages 73 -74 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the Notes to Financial Statements. Combining and individual fund statements and schedules can be found on pages 76 -121 of this report. Government -wide Financial Analysis Statement of Net Assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Winter Springs, assets exceeded liabilities by $86,229,927 at the close of the most recent fiscal year. Of the City of Winter Springs' net assets ($58,658,010 or 68 %) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment); less any related outstanding debt used to acquire those assets. The City of Winter Springs uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Net Assets. (Continued) Although the City of Winter Springs' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net assets that are subject to external restrictions as to how they may be used total $9,959,060 (12 %). The remaining balance of unrestricted net assets ($17,612,857 or 20 %) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2010, the City of Winter Springs is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. This was also the case at the close of the prior fiscal year. The following table reflects the condensed Statement of Net Assets for the current and prior year. For more detail see the Statement of Net Assets on page 16. City of Winter Springs Statement of Net Assets As of September 30 0 Governmental Activities Business -type Activities Total Primary Government 2010 2009 2010 2009 2010 2009 Assets: Current and other assets $ 27 $ 27 $ 7 $ 7 $ 35 $ 34 Restricted assets 261 131 2 2 2 2 Capital assets 59 59 35 33 94 92 Total assets 87 86 44 43 132 129 Liabilities: Current liabilities 2 3 2 1 4 5 Long term liabilities 19 20 21 21 40 42 Other liabilities 267 131 643 674 911 806 Total liabilities 22 24 23 24 45 48 Net assets: Invested in capital assets, net of related debt 42 40 15 13 58 53 Restricted 8 8 1 2 9 11 Unrestricted 14 13 3 3 17 16 Total net assets $ 65 $ 62 $ 20 $18,956,328 $ 86 $ 81 0 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Assets. The following table reflects the Statement of Changes in Net Assets for the current and prior year. For more detailed information see the Statement of Activities on page 17. Note that the government's total net assets increased by $4,480,522 or 5% in fiscal year 2010. The previous fiscal year, 2009, net assets decreased by $1,508,651. Governmental activities increased net assets by $2,603,517 in fiscal year 2010 compared to an increase of $176,420 in 2009. The increase in net assets is primarily due to increases in utilities tax, franchise fees and a successful FEMA appeal, and the decreases in expenses, particularly in physical environment and culture and recreation. Business -type activities increased net assets by $1,877,005 in fiscal year 2010 compared to a decrease of $1,685,071 in 2009. Following the Changes in Net Assets table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business -type activities as well as the revenue "source" for each. Additional information regarding the changes in fund balance of the governmental and business - type activities can be found in the section entitled Financial Analysis of Government's Funds on page 11. Note that the first graph depicts governmental program- specific revenues and expenses. For this graph the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. Note that the Development Services Fund shows revenues approximately equal to expenses excluding transfers out. Increase in stormwater revenue is due to the receipt of donated capital and grant revenues. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Assets. (Continued) City of Winter Springs Changes in Net Assets For the Year Ended Septem be 30 Governmental Activities Business -type Activities Total Primary Government 2010 2009 2010 2009 2010 2009 Revenues: Program revenues: Charges for services $ 6 $ 6 $ 9 8 $ 15 $ 14,701,021 Operating grants and contributions 485 41 - 483 485 524 Capital grants and contributions 2 2 2 13 5 2 General revenues: Property taxes 4 5 - - 4 5 Utility taxes 4 4 - - 4 4 Business tax receipts 204 70 - - 204 70 Intergovernmental - unrestricted 2 2 - - 2 2 Investment income and miscellaneous 731 613 102 41 834 655 Total revenues 22 21 12 9 35 30 Expenses: General government 5 5 - - 5 5 Public safety 7 7 - - 7 7 Physical environment 5 6 - - 5 6 Culture and recreation 2 2 - - 2 2 Interest and other fiscal charges on long -term debt 943 958 - - 943 958 Water and sewer - - 7 7 7 7 Development services - - 348 435 348 435 Stormw ater - - 915 1 915 1 Total expenses 21 22 8 9 30 31 Increase in net assets before transfers 807 (1,514,786) 3 6 4 (1,508,651) Transfers 1 1 (1,795,888) (1,691,206) - - Increase (decrease) in net assets 2 176 1 (1,685,071) 4 (1,508,651) Net assets- October 1 62 62 18 20 81 83 Net assets- September 30 $ 65 $ 62 $ 20 $18,956,328 $ 86 $ 81,749,405 0 • MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Assets. (Continued) Governmental Program Specific Revenues and Expenses 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 General Public Safety Physical Culture & Government Environment Recreation Intereston Long-Term De bt Governmental Revenues by Source Investment Income and Miscellaneous 3% Taxes Charges for Services 41% 28% Capital and Operating Grants and Contributions 15% Intergovernmental Revenues 13% Revenues Expenses 0 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Assets. (Continued) Business -type Activities Revenues and Expenses 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3 1 000 1 000 2 t 1 1 000 1 000 I Water and Sewer Development Services Stormwater Business -type Activities Revenues by Source Capital and Operating Grants and Contributions 23% Chargesfor Services 76% Investment Income and Miscellaneous 1% Revenues Expenses 10 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Financial Analysis of the Government's Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds. The focus of the City of Winter Springs' governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs' financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2010, the City of Winter Springs' governmental funds reported combined ending fund balances of $19,994,959, an increase of $497,722 over the prior year. Approximately 93% or $18,600,496 of this total amount constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed for such purposes as debt service, inventories and prepaid costs. The general fund is the chief operating fund of the City of Winter Springs. At the end of the current fiscal year, unreserved fund balance of the General Fund was $8,274,850, while total fund balance was $8,793,205. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved and total fund balance represent 52% and 55% respectively, of total General Fund expenditures. The increase in fund balance of the general fund is primarily due to decreased governmental expenditures. Proprietary funds. The City of Winter Springs' proprietary funds provide the same type of information found in the government -wide financial statements but in more detail. Unrestricted net assets of the Water and Sewer Utility Fund at the end of the year amounted to $2,736,409 and total net assets decreased $723,118. This decrease is primarily a result of increases in operation and material costs and non - operational expenses such as accreted interest. The Development Services Fund net assets decreased $334,825 to a deficit balance of $393,782 at the end of the fiscal year. The decline in net assets is due to continued weakness in the housing and development sector. The Stormwater Utility Fund net assets increased $2,934,948 to $7,316,610 at the end of the fiscal year. The increase in net assets is primarily a result of the grant funded Solary Canal stormwater treatment project and the donation of land from St. John's River Water Management District for the project. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in $318,430 less appropriations from fund balance during the year from an appropriation from fund balance of $1,162,273 in the original budget to appropriations from fund balance of $843,843 in the final budget. The majority of the decreases in appropriations can be summarized as follows: • $400,000 increased transfer from the Public and Communications Service Tax Fund primarily due to electricity tax revenues in excess of budget 11 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) General Fund Budgetary Highlights (Continued) $300,000 increased transfer from the Electricity Franchise Fee Fund resulting from electricity franchise revenues in excess of budget • $225,206 decreased transfer from the Development Services Fund per updated cost allocation model • $28,119 Commission approved supplemental appropriations throughout the year $86,589 Purchase order rollovers from fiscal year 2009 The actual results of General Fund for the year show an appropriation to fund balance of $14,391 compared to a final budgeted appropriation from fund balance of $843,843. The favorable variance of $858,234 is primarily comprised of the following: • $147,436 unbudgeted unrealized gain • $733,964 favorable expenditure variance which largely results from 90% utilization of operating budget (exclusive of personnel) and positions which were unfilled for all or part of the fiscal year; namely, Project Administrator (executive), Finance Director, Purchasing Coordinator, Accounts Payable Supervisor, Custodian, Customer Service Representative, Data Entry Clerk (Finance & Administrative Services), Capital Projects Administrator, various short -tem vacancies (Public Works), Crew Chief (2), Maintenance Workers (Parks and Recreation). The comparison of budgeted results to actual results for the General Fund is shown on pages 24 -25. Capital Asset and Debt Administration Capital assets. The City of Winter Springs' investment in capital assets for its governmental and business -type activities as of September 30, 2010, amounts to $94,615,383 (net of accumulated depreciation), for an increase of $1,970,974 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, intangibles, park facilities, roads, highways, and bridges. The total increase in the City of Winter Springs' investment in capital assets for the current fiscal year was 2% (a 0.2% increase for governmental activities, and a 5.3% increase for business -type activities). Major capital asset events during the current fiscal year included the following: • The completion and capitalization of the following projects: • Road reconstruction and resurfacing totaling approximately $416,000 • Road and intersection improvements including the deceleration lanes for State Road 434 /Hayes Road and State Road 434/Vistawilla Drive, intersection improvements for State Road 419 /Wade Street and Sherry Avenue, and the median improvement on State Road 434 at a cost of $853,000 ($433,000 was spent in prior years) • Buildings 6 and 7 at the Public Works Facility at a cost of $22,000 ($578,000 was spent in prior years ) • Paw Park, a dog park amenities at Central Winds Park at a cost of $56,000 o Sewer pipe relining at a cost of $229,000 12 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Capital Asset and Debt Administration (Continued) • The continued construction on the following projects: • Paving of Ranchland roadways at a cost of $634,000 ($70,000 was spent in prior years) • Deceleration lane at State Road 434 /Tuscora Road at a cost of $23,000 ($17,000 was spent in prior years) • Water augmentation at Lake Jessup at a cost of $140,000 ($48,000 was spent in prior years) • Electrical improvements to Water Treatment Plant #2 at a cost of $333,000 ($26,000 was spent in prior years) • The ongoing construction of the following projects: • Solary Canal reclaimed water treatment facility at a cost of $915,000, this project is fully grant funded. • The donation of land by the St. John's River Water Management District at a value of $1,800,000 Additional information on the City of Winter Springs' capital assets can be found in Note 6 on pages 52 -54 of this report. City of Winter Springs Capital Assets (Net of Depreciation) As of September 30 Land Buildings Improvements other than buildings Machinery and equipment Intangibles Inf rastructure Construction in progress Total Governmental Activities Business -type Activities Total Primary Government 2010 2009 2010 2009 2010 2009 $ 9 $ 9 $ 7 $ 5 $ 17 $ 15 8 8 264 289 9 9 8 8 25 26 33 35 1 1 754 851 2 2 80 111 8 11 89 122 29 29 - - 29 29 1 1 1 123 2 1 $ 59 $ 59 $ 35 $ 33 $ 94 $ 92 Long -term debt. At September 30, 2010, the City of Winter Springs had total debt outstanding of $42,678,142, a decrease of $2,099,907 from $44,778,049 at September 30, 2009. Total bonded debt of the City at the end of the current fiscal year was $35,745,568, for a decrease of $1,800,853 over the prior year. This amount does not include accreted interest of $5,661,581. 13 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Caaital Asset and Debt Administration (Continued Long -term debt. (Continued) Of the total amount of bonded debt, $2,850,000 comprises debt backed by the full faith and credit of the government and $1,880,000 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. The remainder of the City of Winter Springs' bonded debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). Other than principal payments, there were no changes in the structure of the City's bonded debt during fiscal year 2010. There are no limitations placed on the amount of debt the City may issue either by the City's charter, code of ordinances or by the Florida State Statutes. Additional information on the City of Winter Springs' long -term debt can be found in Note 7 on pages 54 -60 of this report. 14 City of Winter Springs Long Term Debt As of September 30 Governmental Activities Business -type Activities Total Primary Government 2010 2009 2010 2009 2010 2009 Improvement Refunding Revenue Bonds, Series 1999 $ 5 $ 5 $ - $ - $ 5 $ 5 Water & Sewer Refunding Revenue Bonds, Series 2000 - - 6 6 6 6 Special Assessment Revenue Bonds, Series 2001 1 1 - - 1 1 Water & Sewer Refunding Revenue Bonds, Series 2001 - - 4 4 4 4 Water & Sewer Refunding Revenue Bonds, Series 2002 - - 9 9 9 9 Limited General Obligation Bonds, Series 2002 2 2 - - 2 2 Improvement Refunding Revenue Bonds, Series 2003 6 7 - - 6 7 Capital Improvement Revenue Note, Series 2004A - 354 - - - 354 Capital Improvement Revenue Note, Series 2004 - 655 - - - 655 Capital Improvement Revenue Note, Series 2006 211 230 - - 211 230 Accreted Interest Payable 2 2 2 2 5 4 Capital Lease - 116 - - - 116 Compensated Absences 749 679 155 175 904 855 Other Post Employment Benefits 114 56 40 20 155 77 Adjustments for Issuance Discounts and Deferred Refunding Costs (48,124) (52,872) (659,469) (718,868) (707,593) (771,740) Total $ 20 $ 21 $ 22 $ 22 $ 42 $ 44 14 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Economic Factors and Next Year's Budgets and Rates Winter Springs is primarily a residential community serving more than 34,000 residents and is adjacent to the City of Orlando, one of Florida's largest metropolitan statistical areas. Winter Springs was also recognized by Money Magazine in 2007 as one of our country's " Best Places to hVP_" Winter Springs offers excellent opportunities for the development of high technology industries. Situated on the eastern edge of the City, Seminole Way is a strategic economic development initiative focused on attracting high value jobs and businesses to Seminole County. The State Road 417 (Central Florida Greeneway) corridor defines the boundaries of the Seminole Way district, spanning the length of Seminole County and connecting to both Orange County's "Innovation Way" and the "Medical City" located at Lake Nona. The City has targeted this Greeneway Interchange District (GID) for technology industry development complemented by commercial and retail establishments. It is expected to become a premier employment center with professional and high tech office buildings, conference facilities, and hotel rooms. The City's ability to expand and diversify its tax base will be a major factor in providing additional financial resources to fund an increasing demand for services. Long Term Financial Planning The total taxable assessed property value in Winter Springs decreased 9.5% from $2,009,169,000 for fiscal year 2009 to $1,809,808,000 for fiscal year 2010. However, the rate of property tax decreases are showing signs of slowing and the real estate marketing is beginning to stabilize. In fiscal year 2011 the reduction in assessed values are estimated to fall only 3 %- 5%. Although the real estate market remains soft, the City will benefit from several factors that offset this slowdown. The primary factors are: Significant undeveloped land, both residential and commercial Comparatively low tax rates Current commercial and residential development presently under construction and in planning The national and state economies play a key role in assessing the City's financial future. While economic changes at the state and national level often lead to reduction in tax receipts the City has remained vigilant, flexible and proactive with corresponding changes in expenditures. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs' finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is also available at the City of Winter Springs' website located at www.wintersoringsfl.org 15 This pave intentionally left blankL U * � �LOR10.% BASIC FINANCIAL STATEMENTS This pave intentionally left blankL U * � �LOR10.% GOVERNMENT -WIDE FINANCIAL STATEMENTS This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS September 30, 2010 ASSETS Cash and cash equivalents Investments Receivables, net Internal Balances Due from other governments Inventories - at cost Prepaid costs Restricted assets: Cash and cash equivalents Investments Bond issuance costs Capital Assets Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Receivables, long -term Total Assets LIABILITIES Accounts payable and accrued expenses Due to other governments Accrued interest payable Net pension obligation Unearned revenues Liabilities payable from restricted assets Noncurrent liabilities: Due within one year Due in more than one year Total liabilities NET ASSETS Governmental Business -type Activities Activities Total 4 - 4 $ 5 $ 1 7 967 7 514 $ 7 13, 282, 772 3 16, 872, 903 5 1 7 360 (360, 053) - 1, 571 650 652 4 16 21 195 412 195 261 - 261 - 2 2 157 277 434 11, 005, 255 8 19, 893, 417 48 26 74 2 - 2 87, 539, 083 44, 647, 926 132,187, 009 985 535 1 170 - 170 251 397 649 14 - 14 12 - 12 267 643 911 1 1 2 19, 380, 601 21, 053, 712 40, 434, 313 22,142, 489 23, 814, 593 45, 957, 082 Invested in capital assets, net of related debt Restricted for: Capital projects Debt Service Renewal and replacement Physical environment Public safety Unrestricted Total net assets 42, 818, 690 15, 839, 320 58, 658, 010 4 - 4 876 1 7 133 2 241 - 408 408 2, 342 001 - 2, 342 001 77 284 - 77 284 14, 348, 428 3 264 17 7 857 $ 65, 396, 594 $ 20, 833, 333 $ 86 229, 927 The accompanying Notes to Financial Statements are an integral part of these statements. 16 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF ACTIVITIES For The Year Ended September 30, 2010 General revenues: Property taxes 4 - 4 Utility taxes Net (Expense) Revenue and Changes in Net Assets - 4 Business tax receipts Program Revenue - 204 Primary Government 2 - 2 Investment income and miscellaneous Operating Capital Grants 834 Transfers 1 (1,795,888) - Charges for Grants and and Governmental Business -type 2 Functions /Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities $ 86, 229, 927 General Government $ 5 $ 2 $ - $ - $ (3,342 $ - $ (3 342, 074) Public Safety 7 607 37 118 (6 - (6 Physical environment 5 3 447 2 707 - 707 Culture and Recreation 2 301 - 92 (1 - (1 Interest on Long -term debt 943 - - - (943 - (943 Total governmental activities 21 6 485 2 (12 - (12 Business -type activities: Water and sewer 7,446, 906 8 - 47 - 615 615 Development services 348 331 - - - (17,756) (17,756) Stormwater 915 1 - 2 - 2 2 Total business -type activities 8 9 - 2 - 3 3 Total primary government $ 30 $ 15 $ 485 $ 5 (12,099,134) 3 (8,529,190) General revenues: Property taxes 4 - 4 Utility taxes 4 - 4 Business tax receipts 204 - 204 Intergovernmental - unrestricted 2 - 2 Investment income and miscellaneous 731 102 834 Transfers 1 (1,795,888) - Total general revenues and transfers 14 (1,692,939) 13 Change in net assets 2 1 4 Net assets - beginning 62 18 81 Net assets - ending $ 65, 396, 594 $ 20, 833, 333 $ 86, 229, 927 The accompanying Notes to Financial Statements are an integral part of these statements. 17 This pave intentionally left blankL U * � �LOR10.% FUND FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2010 Assets: Cash and cash equivalents Investments Receivables, net Inventories, at cost Due from other funds Due from other governments Prepaid expenses Special assessments receivable Advances to other funds Restricted assets: Cash and cash equivalents Total assets Liabilities and Fund Balances: Accounts payable Accrued liabilities Due to other funds Due to other governments Deferred revenue Unearned revenue Payable from restricted assets Other payables Total liabilities Fund balances Reserved Inventories and prepaid costs Debt service Advances Unreserved, reported in: General fund Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances The accompanying Notes to Financial Statements are an integral part of these statements. 18 Special Revenue Public & Road Communications Improvements Solid General Fund Service Tax Fund Waste /Recycling $ 1 7 891 7 820 $ - $ - $ 306 6 - - 891 117 137 5 4 4,716 - - - 685, 458 - - - 1,571 - - - 195,175 - - - 318 - - - 261 - - - $ 9 $ 137 $ 5 $ 1 7 202 7 162 $ 267 $ - $ 70 $ 172 387 - - - - 137 187 - 12,865 - - - - - 3 - 12,552 - - 261 - - - 942 137 4 172,178 199 - - - 318 - - - 8 274 - - - - - 1 266 1, 029, 984 8 205 - 1 266 1, 029, 984 $ 9 $ 137 $ 5 $ 1, 202,162 The accompanying Notes to Financial Statements are an integral part of these statements. 18 $ 2 $ 9 $ 28 299 $ 2 $ 84 $ 597 - - 387 - 318 643 - 158 170 1 759 6 - - 12, 552 - - 261 1 1 8 199,891 204 671 876 - - 318 - - 8 274 - 5 7 204 8 19, 994, 959 $ 2 $ 9 $ 28, 479, 299 19 Other Total TLBD Debt Governmental Governmental Service Funds Funds $ 129 $ 2 $ 5 75 6 13, 282, 772 1 96 5 - - 4,716 - - 685 - - 1, 571 - - 195 1 759 2 - - 318 $ 2 $ 9 $ 28 299 $ 2 $ 84 $ 597 - - 387 - 318 643 - 158 170 1 759 6 - - 12, 552 - - 261 1 1 8 199,891 204 671 876 - - 318 - - 8 274 - 5 7 204 8 19, 994, 959 $ 2 $ 9 $ 28, 479, 299 19 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS September 30, 2010 Total fund balance, governmental funds Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Other long -term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Bond issuance costs, which are expenditures in the funds, are deferred and amortized over the life of the bond. The cumulative net pension contribution which is less than the annual required contribution is presented as a liability on the statement of net assets. Net Assets of Governmental Activities in the Statement of Net Assets $ 19 59, 546, 341 6 (20 691, 743) 157,312 (14,679) $ 65 The accompanying Notes to Financial Statements are an integral part of this statement. 20 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUND For The Year Ended September 30, 2010 The accompanying Notes to Financial Statements are an integral part of these statements. 21 Public & Road Communications Improvements Solid General Fund Service Tax Fund Waste /Recycling Revenues: Taxes: Property taxes $ 4 $ - $ - $ Utility taxes - 4 - - Business tax receipts 204 - - - Permits and fees 64 - - 98 Intergovernmental revenues 3 - 1 116 Charges for services 559 - - 2 Fines and forfeitures 408 - - - Impact fees /assessments - - - - nvestment income 150 (199) 8 15 Miscellaneous 150 - 9 2 Total revenues 8 4 1 2 Expenditures: Current: General government 5 - - - Public safety 6 - - - Physical environment 978 - 4 2 Culture and recreation 1 - - - Debt Service: Principal 116 - - - Interest and fiscal charges 4 - - - Capital Outlay: General government 98 - - - Public safety 465 - - - Physical environment - - 1 7 646 7 003 - Culture and recreation 128 - - - Total expenditures 15 - 1 2 Excess (Deficiency) of Revenues Over Expenditures (7 024, 282) 4 16 351 Other Financing Sources (Uses) Transfers in 7 - - - Transfers out (699, 513) (4 535, 806) (365) (264, 740) Total other financing sources(uses) 7 (4 (365) (264 Net Change in Fund Balances 14 - 15 86 Fund Balances - Beginning 8 - 1 943 Fund Balances - Ending $ 8 $ - $ 1 7 390 7 266 $ 1 7 029 7 984 The accompanying Notes to Financial Statements are an integral part of these statements. 21 Other Total TLBD Debt Governmental Governmental $ - $ 193 $ 4 - - 4 - - 204 - 2,187, 389 2 - 859 5 - 13 2 - 157 566 55 666 721 100 164 439 14 114 291 169 4 22, 204, 456 - 3 5 - 45 6 6 788 4 - - 1 55 1 1 97 491 593 - - 98 - 59 524 - 340 1 - - 128 159 3 23, 511, 212 10 803 (1 306, 756) - 1 9 - (2 310, 608) (7 811, 032 ) - (433, 284) 1 10 370 497 $ 204 $ 8 $ 19, 994, 959 22 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2010 Net change in fund balances - total governmental funds: Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade -ins and disposals) is to decrease net assets The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long -term debt and related items Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year Pension expense is recorded in the statement of activities for amount of annual required pension contribution which was not made during the year Contributions of capital assets are not reported as revenues in the governmental funds Transfers of assets to properietary funds $ 497 81,278 (50, 093) 1 585 (88,901) (20,352) 103 (8, 590) Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds. (492 Change in net assets of governmental activities $ 2 The accompanying Notes to Financial Statements are an integral part of these statements. 23 CITY OF WINTER SPRINGS, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN For The Year Ended September 30, 2010 Revenues: Taxes: Property Taxes Business tax receipts Permits and fees: Permits Franchise fees Intergovernmental revenues: Sales tax State revenue sharing Other state shared revenue Other county shared revenue Federal grants Charges for services: Program activity fees Rental and other Fines and forfeitures Investment income Miscellaneous Total revenues The accompanying Notes to Financial Statements are an integral part of these statements. 24 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final $ 4 $ 4 $ 4 $ 31 130 130 204 74 4 4 4 105 18 18 24 5 35 35 40 5 53 53 64 11, 493 1 1 1 8 865 865 893 27 35 35 35 330 - - 1 1 184 218 221 2 2 2 3 39 243 243 227 (15 288 291 331 40 531 534 559 25 498 498 408 (89, 829) 62 62 150 87 12 56 150 93 8 8 8 273 The accompanying Notes to Financial Statements are an integral part of these statements. 24 25 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final Expenditures: Current: General government: Executive $ 639 $ 631 $ 574 $ 56 General government 548 442 402 39 Finance 1, 269, 469 1 1 94 General services 724 721 690 31 Information systems 1, 029, 729 1 1 21 Community development 1 1 1 73 5 5 5 4 317 Public Safety: Police 7,168, 290 7 7 37 Physical enviornment: Public works 1 1,153, 383 978 175 Culture and recreation: Parks and recreation 2 2 2 203 Total expenditures 16, 413, 573 16, 643, 399 15, 910, 593 732 Excess (Deficiency) of Revenues Over Expenditures (7 882, 656) (8 030, 277) (7 024, 282) 1 Other Financing Sources (Uses) Transfers in 7 7 7 (148, 923) Transfers out (726, 328) (700, 675) (699, 513) 1 Net other financing sources 6 7,186, 434 7 (147, 761) Net Change in Fund Balances (1 (843 14 858 Fund Balances - Beginning 8 8 8 - Fund Balances - Ending $ 7 $ 7 $ 8 $ 858 25 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA PUBLIC & COMMUNICATIONS SERVICE TAX SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 The accompanying Notes to Financial Statements are an integral part of these statements. 26 Variance with Final Budget - Positive Budgeted Amounts Actual Amounts (Negative) Original Final Revenues: Taxes Utility taxes $ 4,145, 000 $ 4 $ 4 $ (8, 995) Investment income (loss) - - (199) (199) Total revenues 4,145, 000 4 4 (9 Excess (Deficiency) of Revenues Over Expenditures 4,145, 000 4 4 (9 Other Financing Sources (Uses) Transfers out (4,145, 000) (4 545, 000) (4 535, 806) 9 Total other financing sources ( uses) (4,145, 000) (4 545, 000) (4 535, 806) 9 Net Change in Fund Balances - - - - Fund Balances - Beginning - - - - Fund Balances - Ending $ - $ - $ - $ - The accompanying Notes to Financial Statements are an integral part of these statements. 26 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENTS SPECIAL REVENUE .FUND STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL For The Year Ended September 30, 2010 Revenues: Intergovernmental revenues Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Budgeted Amounts Original Final $ 3 $ 3 4 4 3 000 3, 836, 000 Actual Amounts $ 1 8 9 1 Variance with Final Budget - Positive (Negative $ (2,183 4,790 %500 (2 5 5 4 276 3,905 3 1,646,003 2 3 3 1 2 259, 273 (74,000) (74,000) 16,236 90 � - ( 355, (355 (365) 354 (355,'183) (355,183) (365) 354,818 (429,183) (429,183) 15,871 445,054 1 1,374,395 1, 374, 395 - $ 945,212 $ 945 $ 1 $ 445,054 The accompanying Notes to Financial Statements are an integral part of these statements. 27 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE/RECYCLING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN For The Year Ended September 30, 2010 Revenues: Permits and fees Intergovernmental revenues Charges for services Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending The accompanying Notes to Financial Statements are an integral part of these statements. 28 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final $ 95 $ 95 7 000 $ 98 $ 3 71 71 116 45 2 2 2 (21, 526) 6 6 15 8 - - 2 2 2 2 2 38 2 2 2 72 2 2 2 72 240 240 351 110, 968 (270, 000) (270, 000) (264, 740) 5 (270, 000) (270, 000) (264, 740) 5 (29, 700) (29, 700) 86 116 943 943 943 - $ 913 $ 913 $ 1 7 029 7 984 $ 116 The accompanying Notes to Financial Statements are an integral part of these statements. 28 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS September 30, 2010 The accompanying Notes to Financial Statements are an integral part of these statements. 29 Business -type Activities - Enterprise Funds Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Assets Current assets: Cash and cash equivalents $ 1 $ - $ 140 $ 1 Investments 3 - 407 3 Receivables, net 1 - - 1 Inventories 16 - - 16 Prepaid expenses - 412 - 412 Due from other governments - - 650 650 Restricted cash and cash equivalents 732 - - 732 Total current assets 6 412 1,198, 943 7 Non - current assets: Restricted investments 2 - - 2 Bond issuance costs 277 - - 277 Capital Assets: Land, buildings and equipment 52 104 8 61 Construction in Progress 641 - 1 1 Less Accumulated depreciation (24, 899,158) (101 (3 574, 399) (28 575, 044) Total capital assets (net of accumulated depreciation) 28, 674, 234 3 6 35, 069, 042 Total non - current assets 30, 989, 400 3 6 37, 384, 208 Total assets 37, 413, 816 3 7 45, 007, 979 Liabilities Current Liabilities: Accounts payable 151 5 130 287 Accrued liabilities 82 10 17 111 Retainage payable 34 - 101 136 Compensated absences - current 99 10 13 124 Customer deposits payable 643 - - 643 Due to other funds - 360 - 360 Revenue bonds payable - current 1 - - 1 Accrued interest payable 397 - - 397 Total current liabilities 2 387 263 3 Non - current liabilities: Revenue bonds payable 18,169, 722 - - 18,169, 722 Accreted interest payable 2 - - 2 Compensated absences 24 3 4 31 Other non - current liabilities 27 7 5 40 Total non - current liabilities 21, 033, 606 10 9 21, 053, 712 Total liabilities 23, 503, 311 397 273 24 NET ASSETS Invested in capital assets, net of related debt 9 3 6 15, 839, 320 Restricted for debt service 1 - - 1 Restricted for renewal and replacement 408 - - 408 Unrestricted 2, 736, 409 ( 397, 294) 925 3 Total net assets $ 13, 910, 505 $ (393, 782) $ 7 $ 20, 833, 333 The accompanying Notes to Financial Statements are an integral part of these statements. 29 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended September 30, 2010 Business -type Activities - Enterprise Funds Operating Revenues: User charges Other revenue Total operating revenues Operating Expenses: Salaries and benefits Materials and supplies Depreciation and amortization Other operating expenses Total Operating Expenses Operating income (loss) Nonoperating Revenue (Expenses): Investment income Interest expense State grant revenue Accreted interest expense Proceeds from auction and insurance Gain (loss) on disposal of capital assets Total non - operating revenue (expenses) Income (loss) before contributions and transfers Capital contributions: Connection fees Capital contribution Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total $ 8 $ 331 $ 1 $ 9 - - 3 3 8 331 1 9 2 301 477 3 950 2 165 1,119, 709 1 4 246 1 1,150, 963 - 39 26 1 6 348 915 7 1 (17, 756) 135 2 84 (211) 10 94 (869 - - (869 - - 1 1 (375 - - (375 8 5 5 8 (115, 695) - - (115, 695) (1 268, 982) (206) 1 (241, 037) 659 (17, 962) 1,163, 327 1 3 - - 3 52 - 1 1 6 - 61 67 (1 445, 236) (316, 863) (110, 056) (1, 872,155) (723 (334, 825) 2 1 14, 633, 623 (58, 957) 4 18, 956, 328 $ 13, 910, 505 $ ( 393, 782) $ 7 $ 20, 833, 333 The accompanying Notes to Financial Statements are an integral part of these statements. 30 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2010 Business -type Activities - Enterprise Funds Water an Sewer Utilitv Development Stormwater Cash Flows from Operating Activities: Receipts from customers $ 7,840,735 $ 331,056 $ 1,050,684 $ 9 Payments to suppliers (2 (37 (87 (2 Payments to employees (2 (302 (476 (3 Net cash provided (used) by operating activities 3 (9 486 3 Cash Flows from Non - Capital Financing Activities: Transfers in 6 - 61 67 Transfers out (1 (316 (110 (1 Increase in due to other funds - 326 - 326 Grant revenues - - 366 366 Net cash provided by non - capital financing activities (1 9 318 (1 Cash Flows from Capital and Related Financing Activities: Proceeds from sale of capital assets 5 5 5 5 Proceeds from insurance 2 - - 2 Acquisition of capital assets (814 - (1 (1 Principal paid on revenue bonds & leases (1 - - (1 Interest paid on revenue bonds (831 - - (831 Connection fees 3 - - 3 Net cash provided by capital and related financing activities (2 5 (1 (3 Cash Flows from Investing Activities: Sale of investments 492 - 173 665 Investment income 84 (211) 10 94 Net cash provided by investing activities 576 (211) 184 760 Net Increase (Decrease) in Cash and Cash Equivalents (59 - (41 (101 Cash and Cash Equivalents - Beginning 1 - 182 2 Cash and Cash Equivalents - End $ 1 $ - $ 140 $ 1 Classified As: Cash and cash equivalents 1 - 140 1 Restricted cash 732 - - 732 Total $ 1 $ - $ 140 $ 1 The accompanying Notes to Financial Statements are an integral part of these statements. 31 Enterprise Funds Water an Sewer Utility Development Stormwater Reconciliation of Operating Income(Loss) to Net Cash Provided(Used) by Operating Activities Operating income (loss) Adjustments Not Affecting Cash: Depreciation and amortization Change in Assets and Liabilities: Decrease in accounts receivable Increase in inventories Decrease in prepaid costs Increase (decrease) in accounts payable Increase in due to other governments Increase (decrease) in accrued liabilities Decrease in customer deposits Increase (decrease) in accrued compensated absences Increase in OPEB obligation Total adjustments Net Cash Provided (Used) By Operating Activities Noncash Capital and Financing Activities: Contributed capital assets 1,662,943 4 4,863 2 246,335 1 1,914,141 (143,111) - - - - ( (143,111) 3,281 - - - - 3 3,281 - 4 411 - - 4 411 47,559 5 5,124 1 104 1 157 (10 ( (2 ( (3 ( (16 (30 - - - - ( (30 (18 ( (2 1 1 ( (20 13 3 3 2 2 1 19 (138 3 3 1 104 ( (29 52,590 $ - $ 1,820,000 $ 1,872,590 32 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS September 30, 2010 The accompanying Notes to Financial Statements are an integral part of these statements. 33 Defined Benefit Pension Trust Fund Assets: Cash and cash equivalents $ 2 Receivables: Plan members contributions 83 Investments, at fair value: Common funds - equity 13 Common funds - bonds 4 Total Investments 18, 317,195 Total assets 21, 017, 998 Liabilities - Net Assets: Held in trust for pension benefits $ 21 The accompanying Notes to Financial Statements are an integral part of these statements. 33 This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2010 The accompanying Notes to Financial Statements are an integral part of these statements. 34 Defined Benefit Pension Trust Fund Additions: Contributions: Employer $ 2 Plan Members 284 Total contributions 2 Investment income: Net appreciation in fair value of investments 2 Interest 163 Net investment income 2 Total additions 4 Deductions: Benefits 886 Administrative expenses 178 Total deductions 1 Change in net assets 3 Net assets - beginning 17, 323, 879 Net assets - ending $ 21, 017, 998 The accompanying Notes to Financial Statements are an integral part of these statements. 34 This pave intentionally left blankL U * � �LOR10.% NOTES TO FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies: A. Reporting Entity The City of Winter Springs, Florida (the City) is a political subdivision of the state of Florida located in Seminole County, and was established by the Laws of Florida 59 -1614. The legislative branch of the City is comprised of a five - member elected Commission and a separately elected mayor, which is governed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy; the execution of such policy is the responsibility of the City Manager appointed by the Commission. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. 35 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 36 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The government reports the following funds: Maior Governmental Funds The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Public and Communications Service Tax Special Revenue Fund accounts for collections of utility taxes charged on electric, water and gas services as well as telecommunications service taxes. Proceeds are used to pay annual debt service and monies not required to pay debt service are transferred to the general fund. The Road Improvements Special Revenue Fund accounts for collected one -cent sales tax revenues to be used for transportation - related improvements. The Solid Waste /Recycling Special Revenue Fund accounts for proceeds from billed solid waste and recycling services performed by contract vendors. Proceeds are used to pay monthly vendor charges for providing solid waste and recycling services. The TLBD Debt Service Fund was established to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue. 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Non -Maior Governmental Fund Types Special Revenue Funds account for specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes. Debt Service Funds account for the accumulation of resources for and the payment of principal and interest on certain long -term debt. Capital Projects Funds account for financial resources segregated for the acquisition or construction of major capital facilities. Maior Proprietary Funds The Water and Sewer Utility Fund is used to account for the operations of the City's water and wastewater systems, which are financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. The Development Services Fund is used to account for the operations of the City's building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. The Stormwater Utility Fund is used to account for the City's operation and maintenance of the stormwater system, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. Fiduciary Fund The Pension Trust Fund accounts for contributions to the defined benefit plan. Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private- sector guidance. 38 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) As a general rule the effect of interfund activity has been eliminated from the government - wide financial statements. Exceptions to this general rule are other charges between the City's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, sewer and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short -term investments with original maturities of three months or less from the date of acquisition. Investments of the City are reported at fair value. The City's investments consist of investments authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes. 39 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 2. Receivables and Payables Activity between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1 % in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. 3. Inventories and Prepaid Items All inventories are valued at cost using the first -in /first -out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. These are recorded as expenditures when consumed rather than when purchased. .s CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government - wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 30 Improvements 20 -50 Infrastructure 30 -50 Intangible assets 3 -10 Equipment 3 -10 41 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the government does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences are generally liquidated by the General Fund. 7. Long -term obligations In the government -wide financial statements, and for proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and discounts (including deep- discount or capital appreciation bonds), as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. M CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 2 - Reconciliation of Government -Wide and Fund Financial Statements: A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net assets - governmental activities as reported in the government - wide statement of net assets. One element of that reconciliation explains that "long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this ($20,691,743) difference are as follows: Bonds Payable Less: Issuance discount (to be amortized as interest expense) Add: Issuance premium (to be amortized as interest expense) Less: Deferred charge on refunding (to be amortized as interest expense) Accreted interest payable Notes payable Capital lease payable Accrued interest payable Other post employment benefits Compensated absences Net adjustment to reduce fund balance- total governmental funds to arrive at net assets - governmental activities $ (16,563,970) 16,226 (55,710) 87,608 (2,848,936) (211,805) (251,431) (114,655) (749,070) $ (20,691,743) Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net assets of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $81,278 difference are as follows: Captial outlay $ 2 Depreciation expense (2,656,357) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets - governmental activities $ 81 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 2 - Reconciliation of Government -Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities (Continued) Another element of that reconciliation states that "the issuance of long -term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities." The details of this $1,995,897 difference are as follows: Debt issued or incurred: Principal repayment Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets - governmental activities $ 1 $ 1 Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($492,681) difference are as follows: Compensated absences $ (69,262) Amortization of issuance costs (14,976) Amortization of bond discounts (4,748) Accrued interest payable (1,452) Other post employment benefits (58,414) Accreted interest payable (343 Net adjustment to decrease net changes in fund balances- total governmental funds to arrive at changes in net assets - governmental activities $ ( 492,681) CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 3 - Stewardship, Compliance, and Accountability: A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. 1. On or before July 1 St of each year, the City Manager submits a Proposed Budget to the City Commission for the fiscal year beginning the following October 1 The budget includes proposed revenues, expenditures and a description of capital activities for the ensuing fiscal year. 2. The City Commission then holds informal workshops, wherein the public is invited to attend. 3. On or before September 30 of each year, two public hearings are completed and the Commission establishes the ad valorem tax millage followed by the adoption of the final budget. 4. The budget may be formally amended by the City Commission at any time. Budgeted amounts presented in the accompanying financial statements have been adjusted for any legally authorized revisions of the annual budgets during the year. 5 The City Manager is authorized to transfer budgeted amounts between accounts within a department. At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriations among programs within one department. The legal level of budgetary control is the departmental level. B. Deficit Net Assets and Deficit Fund Equity The Development Services fund had a deficit net asset balance of $393,782 at September 30, 2010. The Oak Forest Debt service fund has a deficit fund balance of $310,251 at September 30, 2010. 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 4 - Deposits and Investments: Deposits At year -end, the carrying amount of the City's deposits was $4,736,868 and the bank balance was $3,537,886. Petty cash funds of $1,410 are not on deposit with a financial institution, and fiduciary fund cash of $2,617,039 held by the pension fund is not in the City's bank. All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to "authorized depositories ". 1 nvestments The City's investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LG I P) 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. Interest bearing time deposit or savings accounts 6. Repurchase agreements 7. Commercial paper 8. Bankers' acceptances 9. State and /or local government taxable and/or tax-exempt debt 10. Registered investment companies (money market mutual funds) 11. Intergovernmental investment pool The City's investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poors (S & P) rating of AAm or AAm -G. Investments in commercial paper and bankers' acceptances must be rated, at a minimum, "P -1" by Moody's Investors Services and "A -1" by S & P. Investment in state and /or local government taxable and /or tax - exempt debt must be rated at least "Aa" by Moody's and "AK by S & P for long -term debt, or rated at least "MIG -2" by Moody's and "SP -2" by S & P for short -term debt. .o CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 4 - Deposits and Investments (Continued): Investments (continued) Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The city's investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2010, all of the city's bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2010, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. Interest Rate Risk The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to a maximum length to maturity of five years. The maximum length to maturity for an investment in any state or local government debt security is three years. Certificates of deposit maximum maturity is one year and commercial paper and bankers' acceptances are 180 days. The maximum length to maturity for repurchase agreements is 90 days. 47 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 4 - Deposits and Investments (Continued): Investments (continued) Additional Investment Information During 2009, the City withdrew all of the funds invested in Pool A of the State Board of Administration (SBA) Local Government Investment Pool and is withdrawing funds from Fund B as they become available. The SBA is not a registrant with the Securities and Exchange Commission (SEC); however, the State of Florida does provide regulatory oversight. The Board has adopted operating procedures consistent with the requirements for a 2a -7 like fund for the Florida Prime Fund. Therefore, the pool account balance can be used as fair value for financial reporting. Fund B is accounted for as a fluctuating NAVPOOL, not a 2a -7 like money market fund. It is important to note that due to the lack of an actively traded market for Fund B securities, their "fair value" is an estimate of current liquidation value that has been determined through a collaborative process among various pricing experts and sources in the marketplace. Investments held by the City at September 30, 2010 are detailed below. Investments Local Government Investment Pool (Fund B) Local Government Investment Pool (Fund B) Fidelity Institutional Money Market Government Portfolio US Treasury Notes US Government Supported Corporate debt Federal Agency Discount Note Federal Agency Bond Note Fidelity Institutional Money Market Government Portfolio Columbia US Treasury Money Market END Weighted Credit Average Fair Value Rating Maturity $ 553 Not rated 7.49 years 16 Not rated 7.49 years 2 AAAm 55 days 2 TSY 320 days 4 AAA 131 days 2 AAA 262 days 6 AAA 171 days 716 AAAm 55 days 1 Not rated $ 21, 720, 073 END CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 4 - Deposits and Investments (Continued): Investments: Pension Funds The City's Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Interest bearing time deposit or savings accounts 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. State of Florida Local Government Surplus Fund (SBA) 6. Commercial paper 7. Bankers' acceptances 8. State and /or local government taxable and/or tax-exempt debt 9. Intergovernmental investment pool 10. Common and preferred stocks, commingled funds, mutual funds, bonds and structured mortgage or asset backed securities 11. Real Estate and real estate securities 12. Repurchase agreements 13. Foreign securities 14. Registered investment companies (money market mutual funds) The investments held by the City's Pension Trust Fund at September 30, 2010 are detailed below: Investments Weighted Average Fair Value Maturity (Years) Stocks Bonds Total Investments Cash and Cash Equivalents Total Cash and Investments $ 13, 363, 209 4.953.986 18,317,195 2.617.039 $ 20 =0r /_W 5.08 years Rej CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 4 - Deposits and Investments (continued): Investments: Pension Funds (continued) Credit Risk The City's Trust investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investments in: federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backing commercial paper, the long -term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers' acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and /or Revenue Bonds of state or local government taxable or tax - exempt debt be rated A, for long -term debt, by a nationally recognized rating service or rated "MIG -2" or "SP -2 ", for short term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of "Al" by Standard & Poor's (S &P) or "P1" by Moody's Investor Services ( Moody's); fixed income securities be investment grade as measured by S &P or Moody's; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2010, none of the Trust investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's Trust investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. The policy limits an individual issuer of common or capital stock to no more than 5% of the fund's assets; the aggregate investment in any one stock issuing company to no more than 5% of the outstanding capital stock of the company; and the value of bonds issued by any single corporation to no more than 3% of the total fund. The policy limits investments in corporate common stock and convertible bonds to no more than 75% of the fund assets at market value; foreign securities to no more than 20% of fund assets at market value; and alternative investments, such as timber and real estate, to no more than 15% of the fund assets at market value. At September 30, 2010, there were no security investments in the Trust that were over their respective limitations. 50 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 4 - Deposits and Investments (continued): Investments: Pension Funds (continued) Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, so long as the average duration of the portfolio will not exceed +/- 125% of the duration of the Policy benchmark. There were no security level fixed income investments in the Pension Portfolio. Note 5 - Receivables: Receivables as of year end for the City's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: There is an amount of $3,819,627 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,584,777 that are not available to liquidate liabilities of the current period. These receivables totaling $6,404,404 are reported as deferred revenue in the governmental funds balance sheet. 51 Allowance for Accounts Uncollectible Net Fund Receivable Accounts Receivable General $ 117 $ - $ 117 Public & Communications Service Tax Special Revenue 137 - 137 Road Improvements Special Revenue 5 - 5 Solid Waste /Recycling Special Revenue 4 - 4 TLBD Debt Service 1 - 1 Water & Sewer Utility 1 (44,520) 1 Nonmajor Governmental 375 (278,557) 96 $ 7 $ (323 $ 7 There is an amount of $3,819,627 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,584,777 that are not available to liquidate liabilities of the current period. These receivables totaling $6,404,404 are reported as deferred revenue in the governmental funds balance sheet. 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 6 - Capital Assets: Capital asset activity for the year ended September 30, 2010 was as follows: Beginning Ending w ■ ■ w w ■ Governmental activities: Capital assets, not being depreciated: Land $ 9 Construction in Progress 1 Total capital assets, not being (3 397, 861) depreciated 11,293,630 Capital assets, being depreciated: (561 Buildings 12,201,815 Improvements 12,173, 038 Intangible assets 672 Machinery and equipment 6 Infrastructure 53,138, 957 $ 110 $ - 2,000,238 (2 2 (2 624,231 213 30,810 690 (461,293) $ 9 Total capital assets, being depreciated 84 Less accumulated depreciation for 12, 826, 046 12, 387, 015 703 6 3 214 (461, 293) 87, 306, 438 Buildings (3 (422 - (3 Improvements (3 397, 861) (419, 909) - (3 817, 770) Intangible assets (561 (61, 396) (622, 527) Machinery and equipment (5 (628 442 (5 Infrastructure (24 (1 (25 Total accumulated depreciation (36 (2 442 (38 Total capital assets, being depreciated, net 48,126, 616 433 (19 48, 541, 086 Governmental activities capital assets, net $ 59 $ 2 $ (2 $ 59 52 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 6 - Capital Assets (Continued): Increases in accumulated depreciation for governmental activities includes accumulated depreciation on asset reclassifications; this difference is $1,282. 53 Beginning Ending Balance Increases Decreases Balance Business -type activities: Capital assets, not being depreciated: Land $ 5 $ 1 7 825 7 261 $ - $ 7 Construction in Progress 123 1 (274 1 Total capital assets, not being depreciated 5,468, 710 3,693, 544 (274, 092) 8 Capital assets, being depreciated: Buildings 759 759 Improvements 50, 364, 857 318 (350, 000) 50, 332, 949 Intangible assets 100 - 100 Machinery and equipment 3 116 (97 3 Total capital assets, being depreciated 54, 768,690 434 (447, 500) 54, 755, 924 Less accumulated depreciation for: Buildings (469 (25 - (495 Improvements (23 761, 952) (1 652, 738) 234 (25,180, 385) Intangible assets (88, 912) (2, 946) - (91, 858) Machinery and equipment (2 (212 97 (2 Total accumulated depreciation (27 (1 331 (28 Total capital assets, being depreciated, net 27, 755,453 (1,458, 878) (115 26,180, 880 Business -type activities capital assets, net $ 33, 224,163 $ 2 $ (389, 787) $ 35, 069, 042 Increases in accumulated depreciation for governmental activities includes accumulated depreciation on asset reclassifications; this difference is $1,282. 53 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 6 - Capital Assets (Continued): Depreciation expense was charged to functions /programs as follows: Governmental activities: General government $ 170 Public safety 433 Physical environment 1 Culture and recreation 419 Total depreciation expense - governmental activities $ 2 Business -type activities Water and sewer $ 1,642,414 Development services 4 Stormwater 246 Total depreciation expense - business -type activities $ 1 Note 7- Long -Term Debt: Revenue Bonds The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business -type activities. The 1999 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $16,014,307. For the fiscal year, principal and interest paid on this series was $157,993 and total pledged revenue was $6,709,854. The 2001 Special Assessment Bonds are secured by a first lien and pledge of assessments levied on the property within the assessed area as well as the first $160,000 of half -cent sales tax received by the City each year. The total principal and interest remaining to be paid on this series is $3,017,424. For the fiscal year, principal and interest paid on this series was $152,278 and total pledged revenue was $312,278. The 2003 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $7,875,429. For the fiscal year, principal and interest paid on this series was $880,041 and total pledged revenue was $6,709,854. 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 7 -Long -Term Debt (Continued): Revenue Bonds (Continued) The 2000 Water and Sewer Refunding bonds are secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $21,508,455. For the fiscal year, principal and interest paid on this series was $213,451 and total pledged net revenue was $2,240,338. The 2001 Water and Sewer Refunding bonds are secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $5,515,182. For the fiscal year, principal and interest paid on this series was $458,871 and total pledged net revenue was $2,240,338. The 2002 Water and Sewer Refunding Bonds are secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $11,455,592. For the fiscal year, principal and interest paid on this series was $1,152,893 and total pledged net revenue was $2,240,338. 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 7 - Long -Term Debt (Continued): Revenue Bonds (Continued) The original amount of revenue bonds issued in prior years, as well as revenue bonds outstanding at year end, are as follows: Governmental Activities Improvement Refunding Revenue Bonds- Series 1999 (excludes $2,848,936 of accreted interest on capital appreciation bonds) Special Assessment Revenue Bonds- Series 2001 Improvement Refunding Revenue Bonds- Series 2003 Total Business -Type Activities Water and Sewer Refunding Revenue Bonds- Series 2000 (excludes $2,812,645 of accreted interest on capital appreciation bonds) Water and Sewer Refunding Revenue Bonds- Series 2001 Water and Sewer Refunding Revenue Bonds- Series 2002 Total Interest Rates and Original Dates Maturity Amount Balance September 30, 2010 5 1 6 13, 713, 970 10/1/1999 3.25-5.25% to (4/1 & 10/1) 10/1/2029 $ 7 $ 10/1/2002 3.4-5.25% to (4/1 & 10/1) 10/1/2029 $ 2 10/1/2004 2.0-3.7% to (4/1 & 10/1) 10/1/2018 $ 8 5 1 6 13, 713, 970 56 6,614,191 4 245 9 19, 889,191 10/1/2002 4.5-5.5% to (4/1 & 10/1) 10/1/2030 $ 6 $ 10/1/2002 4.0-5.0% to (4/1 & 10/1) 10/1/2021 $ 6 10/1/2003 3.0-5.25% to (4/1 & 10/1) 10/1/2020 $ 13, 980, 000 56 6,614,191 4 245 9 19, 889,191 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 7 - Long -Term Debt (Continued): Revenue Bonds (Continued) Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Governmental Activities Business -Type Activities September 30, Principal Interest Principal Interest 2011 $ 810 $ 389 $ 1 $ 765 2012 860 361 1,105, 000 718 2013 900 331 1,160, 000 666 2014 940 296 1 611 2015 995 260 1 550 2016 -2020 4 1 7,405, 000 1,678, 533 2021 -2025 2 4 2 7 2026 -2030 1 4 1 6 2031 - - 1 - $ 13, 713, 970 $ 13,193,190 $ 19, 889,191 $ 18, 590, 040 General Obliaation Bonds During 2003, the City issued limited general obligation bonds for the acquisition of property to expand Central Winds Park. These bonds are payable from and secured by a pledge of the faith, credit and taxing power of the City, provided that the levy of ad valorem taxes by the City in each year for the payment of debt service on the Series 2003 Bonds shall not exceed one quarter (1/4) of one mil on all of the taxable property in the City. The total principal and interest remaining to be paid on this series is $4,675,278. For the fiscal year, principal and interest paid on this series was $220,508 and total pledged revenue was $193,396. General obligation bonds currently outstanding are as follows: Interest Balance Rates and Original September Dates Maturity Amount 30 Governmental Activities Limited General Obligation 2.0-5.375% Bonds - Series 2002 (1/1 & 7/1) 7/1/2003 to 7/1/2031 $ 3.400.000 $ 2.850.000 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 7 -Long -Term Debt (Continued): General Obligation Bonds (Continued) Annual debt service requirements to maturity for the general obligation bonds are as follows: Year Ending Governmental Activities September 30, Principal Interest 2011 $ 80 7 000 $ 142 2012 85 139 2013 85 135 2014 90 131 2015 95 126 2016 -2020 565 550 2021 -2025 720 394 2026 -2030 920 194 2031 210 10 $ 2.850.000 $ 1.825.279 Notes Payable The City issued a Special Assessment Revenue Note Series 2006, in the amount of $430,000 to provide financing for the Tuscawilla Lighting and Beautification Project, Phase II. The Special Assessment Revenue Note Series 2006 is secured by a first lien and pledge of assessments levied on the property within the assessed area. The total principal and interest remaining to be paid on this series is $258,671. For the fiscal year, principal and interest paid on this series was $27,976 and total pledged revenue was $27,976. Notes payable outstanding at year end are as follows: Special Assessment Revenue Note, Series 2006 - Principal payable annually beginning July 1, 2007 and interest payable semi - annually on January 1 and July 1. Maturity is July 1, 2021 and interest is 4.10 %. Principal payments of $18 were made in fiscal year 2010. $ 211,805 $ 211 58 59 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 7 - Long -Term Debt (Continued): Notes Payable (Continued) Annual debt service requirements to maturity for notes payable are as follows: Year Ending Governmental Activities September 30, Principal Interest 2011 $ 19 $ 8 2012 20 7 2013 21 7 2014 22 6 2015 23 5 2016 -2020 104 11 2021 527 22 $ 211 $ 46 59 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 7 - Long -Term Debt (Continued): Changes in Long -Term Liabilities Long -term liability activity for the year ended September 30, 2010 was as follows: Beginning Ending Governmental activities: Bonds payable - Revenue bonds Special assessment debt with government commitment Limited general obligation bonds Less deferred amounts: Issuance discounts Issuance premiums On refunding Total bonds payable Accreted interest payable Notes payable - Capital improvement notes Capital lease Other post employment benefits Compensated absences Governmental activity long- term liabilities $ 12, 553, 970 $ 1,935,000 2,925,000 (16,987) 62,674 (98, 559) 2,505,107 - $ (720, 000) $ 11, 833, 970 $ - (55, 000) 1,880,000 - (75, 000) 2,850,000 - 761 (16, 226) - (6,964) 55,710 - 10,951 (87,608) - (845, 252) 16, 515, 846 343,829 - 2,848,936 Business -type activities: Bonds payable - Revenue bonds Less deferred amounts: Issuance discounts On refunding Total bonds payable Accreted interest payable Other post employment benefits Compensated absences Governmental activity long- term liabilities Due Within One Year 755,000 55,000 80,000 890,000 1 - (1 211 19 116 - (116, 852) - - 56,241 58 - 114 - 679, 808 749 (679, 808) 749 150 $ 20, 904,191 $ - $ (1,015,000) $ 19, 889,191 $ 1,060,000 (24, 307) - 1,064 (23, 243) - 2 375 - 2 20 19 - 40 - 175,212 155 (175 155 31 $ 22, 818, 093 $ 550 $ (1,130, 813) $ 22, 237, 830 $ 1 •1 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 8 - Interfund Receivables, Payables and Transfers: The composition of interfund advances as of September 30, 2010 is as follows: Receivable Fund Payable Fund Amount General Other Governmental Funds $ 318 $ 318 The advance from the general fund represents a loan from the general fund to pay off the special assessment debt. The composition of interfund balances as of September 30, 2010 is as follows: Receivable Fund Payable Fund Amount General Public & Communications Service Tax Special Revenue Fund $ 137 General Road Improvements Fund 187 General Development Services 360 $ 685 The accounts payable to the general fund represents excess fund balance in the Public and Communication Services Tax Fund which after debt service payments and year -end revenue accruals is available to be transferred to the general fund. Interfund transfers for the year ended September 30, 2010 are summarized below: Transfers In Other Water and Governmental Sewer Utility Stormwater Transfers Out General Fund Funds Fund Utility Fund Total General Fund Public & Communications Service Tax Special Revenue Fund Road Improvements Special Revenue Fund Solid Waste /Recycling Special Revenue Fund Other Governmental Funds Water and Sewer Utility Fund Development Services Fund Stormwater Utility Fund $ - $ 678,954 $ - $ 20,559 $ 699,513 4,002,806 533,000 - - 4,535,806 365 - - - 365 132,370 132,370 - - 264 1 533 - - 2 1 - - 41 1 316 - - - 316 104 - 6 - 110 $ 7 $ 1 $ 6 $ 61 $ 9 61 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 8 - Interfund Receivables, Payables and Transfers (continued): Interfund transfers for the year ended September 30, 2010 are detailed below: Recipient fund Amount Purpose Transfers from Electric Franchise Fee and Public & Communications Service Tax Special Revenue Funds to pay Debt Service expenses on the Improvement Refunding 1999 Debt Service Fund $ 178 Revenue Bonds, Series 1999. Transfers from Electric Franchise Fee and Public & Communications Service Tax Special Revenue Funds to pay Debt Service expenses on the Improvement Refunding 2003 Debt Service Fund 888 Revenue Bonds, Series 2003. Transfer from General Fund to pay Debt Service expenses on the General Obligation Bonds for the acquisition and expansion of Central Winds GO Debt Service Fund 28 Central Winds Park. Transfer from General Fund to pay Debt Service expenses on the Line of Credit for 2004 Capital Projects Debt Service the Senior Center Expansion and Therapy Fund 650 Pool Transfer from Water and Sewer Utility Fund for Utility Billing division budget, fair share portion of General Fund expenses, such as human resources, purchasing, finance, etc., special projects, Kiva project, records management project and operator General Fund 1 expenses. Transfer from Development Services Fund for indirect costs, administration, fire prevention, Community Development (crossover costs), Information Services special projects, Kiva project and records General Fund 316 management project expenses. .� CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 8 - Interfund Receivables, Payables and Transfers (continued): Recipient fund Amount Purpose Transfer from Solid Waste /Recycling Special Revenue Fund for administration, franchise fees and Information Services General Fund 132 records management project. Transfer from TLBD Phase I Maintenance Special Revenue Fund for City Clerk, Beautification Coordinator and insurance General Fund 57 expenses. Transfer from Oak Forest Maintenance Special Revenue Fund for City Clerk, Beautification Coordinator and insurance General Fund 12 expenses. Transfer from Public & Communications Service Tax Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, Series 1999 and Series General Fund 4 2003. Transfer from Fire Assessment Fee Fund to General Fund 24,824 fund a portion of the Fire Department. Transfer from Electric Franchise Fee Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, General Fund 1 Series 1999 and Series 2003. General Fund Transfer from Road Improvements Special Revenue Fund for project coordinator 365 services. 63 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 8- Interfund Receivables, Payables and Transfers (continued): Recipient fund Amount Purpose Transfer from 1999 Construction Capital Project Fund for project coordinator General Fund 78 services. Transfer from Stormwater Utility Fund for administration, special projects, Kiva project General Fund 104 and records management project expenses. Transfer from Special Law Enforcement Trust Special Revenue Fund for the purpose of replacing two 2003 damaged police General Fund 22 vehicles Transfer from Special Law Enforcement Trust — Federal Special Revenue Fund for the purpose of replacing two 2003 damaged General Fund 15 police vehilces Transfer from Veterans Memorial Special Revenue Fund for annual memorial General Fund 2 maintenance Transfer from Solid Waste /Recycling Special Revenue Fund for future emergency Storm Reserve Special Revenue Fund 132 storm cleanup expenses. Transfer from General Fund ten percent of Stormwater Utility Fund 20 engineering expenses less consulting fees. Transfer from Water and Sewer Utility Fund for twenty percent of engineering expenses Stormwater Utility Fund 41 less consulting fees. Transfer from Stormwater Utility Fund for Water and Sewer Utility Fund 6 administration fees. $9,683,187 M e CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 9 - Defined Benefit Pension Plan: Plan Description The City maintains a single - employer defined benefit pension plan that provides retirement benefits to all City employees. The pension plan is maintained as a Pension Trust Fund and is included with the fund financial statements. This pension plan does not issue a stand -alone financial report. In October 2008, the City consolidated fire services with Seminole County, and firefighters were given the option to either remain in the City's pension plan or enroll in the County's pension plan. As a result, 17 firefighters elected to remain in the City's pension plan, although they are no longer employees of the City. The Board of Trustees of the plan are appointed by the City Commission to make advisory recommendations regarding plan provisions and amendments. Any recommendations are then taken back to the Commission for final approval. Summary of Significant Accounting Principles The Plan's financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The City's contributions are recognized when due and formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. All Plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price on the government's balance sheet date. Securities without an established market are reported at estimated fair value. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the Board of Trustees of the Plan. Plan members are required to contribute 3% of their salary to the Plan, which amounted to $284,866, for the year ended September 30 2010. The City is required to contribute at an actuarially determined rate; the rate from the most recent actuarial valuation as of October 1, 2009 for the year ended September 30, 2010 is 21.7% of covered payroll. The City's contribution for the year ended September 30, 2010 was $2,311,058, which is 21.5% of covered payroll. Administration costs and fees attributable to the plan are paid out of the plan and amounted to $178,530 in 2010. 65 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 9 - Defined Benefit Pension Plan (Continued): Membership in the Defined Benefit Plan consisted of the following as of the most recent valuation date, October 1, 2009: Retirees and beneficiaries receiving benefits 41 Terminated plan members entitled to but not receiving benefits 92 Active plan members: Vested 194 Non - vested 27 Fd Annual Pension Cost and Net Pension Obligation — The annual pension cost, net pension obligation and required contribution for September 30 2010 were determined as part of the actuarial valuation of the plan dated October 1, 2009. The annual pension cost and net pension obligation based on the most recent valuation is: Annual Required Contribution $ 2 Interest on Net Pension Obligation (NPO) (454) Adjustment to Annual Required Contribution 504 Annual Pension Cost 2 City Contributions Made (2,311,058) Increase /(Decrease) in N PO 20 Net Pension Asset, beginning of year (5,673) Net Pension Obligation, end of year $ 14 Three Year Trend Information — Fiscal Annual Percentage Net Year Pension Actual of APC Pension Ending Cost (APC) Contribution Contributed Obligation 9/30/2008 2 2 100.2% (5 9/30/2009 1 1 100.0% (5 9/30/2010 2 2 99.1% 14 As of October 1, 2009, the most recent actuarial valuation date, the Plan was 55.2% funded. The actuarial accrued liability for benefits was $37,651,000 and the actuarial value of assets was $20,789,000, resulting in an unfunded actuarial liability (UAAL) of $16,862,000. The covered payroll (annual payroll of active employees covered by the plan) was $10,753,000, and the ratio of the UAAL to the covered payroll was 156.8 %. .. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 9 - Defined Benefit Pension Plan (Continued): The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. The schedule of employer contributions is also presented and shows the extent to which the city has funded the actuarially determined annual required contribution (ARC) over time. The amount legally required as of September 30, 2010 to be reserved for the Plan is $21 Actuarial Methods and Assumptions - The following is a summary of the actuarial methods and significant actuarial assumptions used in the latest actuarial valuation dated October 1, 2009. The plan was amended October 1, 2004 to increase the benefit formula percentage for service prior to October 1, 2000 of 2.0% by .25% increments each year beginning October 1, 2005 through the plan year beginning October 1, 2008 to 3.0 %. Assumptions: Investment Earnings 8% compounded annually Salary Increases /Inflation 3.0% -7.5 %, includes expected inflation at 3.0% Mortality Table RP -2000 Combined Mortality Table with separate rates for males and females and fully generational mortality improvements projected to each future decrement date Normal Form Life annuity with payments for life of participant Retirement Age Later of age 65 or 10 years of service on the valuation date. Withdrawal Rates Used withdrawal assumptions used in July 1, 2009 Florida Retirement System (FRS) Actuarial Valuation. Actuarial Valuation: Frequency Annual Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Projected Payroll Amortization Period 30 Years Closed Asset Valuation Method 5 year smoothed market 67 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 10 - Other Post Employment Benefits: In accordance with Florida Statutes Section 112.0801, the City makes continued group health insurance through the city's current provider available to retirees and eligible dependents provided certain service requirements and normal age retirement requirements have been met. This plan is a single employer plan. This benefit has no cost to the City, other than the implicit cost of including retirees in the group calculation. All premiums are paid by the retiree. The City has one retiree currently receiving benefits. The City has chosen pay -as- you -go funding, but is recording the liability in the government wide financial statements. This plan does not issue stand -alone financial statements. The first actuarial report for the City's Retiree Continuation Insurance plan was prepared as of July 1, 2009. At that point in time, the unfunded actuarial accrued liability (UAAL) for benefits was $505,000 and funded ratio was 0 %. The covered payroll was $9,230,000 and the ratio of the UAAL to covered payroll was 5.5 percent. The annual required contribution and Net OPEB Obligation for the fiscal year ended September 30, 2010 is as follows: Annual required contribution $ 98 Interest on net OPEB Obligation 3 Adjustment to annual required contribution (7,000) Annual OPEB Cost 94 Employer Contributions (16,000) Increase in Net OPEB Obligation 78 Net OPEB Obligation (beginning of year) 77 Net OPEB Obligation (end of year) $ 155 Three Year Trend Information- Summary of Actuarial Methods & Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following Me; Annual Fiscal Required Percentage Year Contribution of ARC Net OPEB Ending (ARC) Contributed Obligation 9/30/2009 93 17.0% 77 9/30/2010 98 16.0% 155 Summary of Actuarial Methods & Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following Me; CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 10 -Other Post Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) the notes to the financial statements, normally presents multi -year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The schedule of funding progress includes only one year so multi -year comparison is not available for this period. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. Actuarial Cost Method- The projected unit credit cost method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. For this purpose, employees were assumed to have been hired at the earlier of current age or age 32. Amortization Method- The level- dollar payment with a 15 year open period amortization method was used. Decrements - Mortality- Sex - distinct mortality rates set forth in the RP -2000 mortality table to annuitants and non - annuitants. Disability- Sex - distinct disability rates set forth in the Wyatt 1985 Disability Study; Class 4 rates were used for police officers, Class 1 rates were used for all other employees. Permanent Withdrawal from Active Status- Sex - distinct withdrawal rates set forth in the Scale 155 table. Retirement- Retirement was assumed to occur as at age 55 for police officers and at age 60 for all other employees Investment Return (Discount Rate)- 4.0% per annum (includes inflation at 2.75% per annum) .• CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 10 -Other Post Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) Health care Costs Trend Rates- The cost of covered medical services has been assumed to increase in accordance with the following rates, compounded annually: Year Increase Year Increase Year Increase 2010 10.00% 2014 8.00% 2018 6.00% 2011 9.50% 2015 7.50% 2019 5.00% 2012 9.00% 2016 7.00% and later 2013 8.50% 2017 6.50% Implied Subsidy (Not Eligible for Medicare) -The implied subsidy for a 62 -year old retiree and his spouse for the period July 1, 2009 through June 30, 2010 is assumed to be $3,300 per year and $4,800 per year, respectively. Implied Subsidy (Dental Insurance) -There is no implied subsidy for dental insurance since it is assumed that the dental insurance costs for covered individuals do not increase with age. Age- Related Morbidity -The cost of covered medical services has been assumed to increase with age at the rate of 3.5% per annum. Retiree contributions- Retirees electing post - employment healthcare coverage have been assumed to make monthly contributions equal to the premium charged to the active employees and retiree contributions are assumed to increase in accordance with the healthcare cost trend assumption. Medical Plan Choice- Retirees have been assumed to elect coverage under the "AETNA ALT J A" plan Future Participation Rates- 10% of eligible employees are assumed to elect healthcare coverage for themselves until age 65 upon retirement or disability; of the retirees election healthcare coverage, 80% of males and 50% of females are assumed to elect coverage for their spouses until age 65. COBRA Assumption- Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation; because the COBRA premium is determined periodically based on plan experience, we assumed that the COBRA premium to be paid by the participant fully covers the cost of providing healthcare coverage during the relevant period. 70 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 10 -Other Post Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) Summary of Benefits Other Post - Employment Benefits (OPEBs)- The City of Winter Springs provides optional post - employment healthcare and dental insurance coverage to eligible individuals. Eligible Individuals- Eligible individuals include all regular employees of the City of Winter Springs who retire from active service and are eligible for retirement or disability benefits under the defined benefit pension plan that is sponsored by the City. Under certain conditions, eligible individuals for healthcare coverage also include spouses and dependent children. Choice of Healthcare Plans- Eligible individuals may choose healthcare coverage under the "AETNA HMO" plan, under the "AETNA ALT J A" plan, or under the "AETNA HIGH B" plan. Required Monthly Premium for Post - Employment Healthcare Coverage- Retirees must pay a monthly premium as determined by the insurance carrier. The premium varies depending on the plan selected and whether the retiree elects single, single plus spouse, single plus children or family coverage. Note 11 - Deferred Compensation Plan: All employees of the City may voluntarily elect to participate in one of two available deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are administered by Nationwide Retirement Solutions and ICMA Retirement Corporation. The plans permit participants to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Because the Plan Assets are held in trust for the exclusive benefit of plan participants and their beneficiaries, the Plan is not accounted for in the City's fund financials. Note 12 - Risk Management: The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; job - related illnesses or injuries to employees; and natural disasters. Risk of loss from above is transferred by the City to various commercial insurers through the purchase of insurance. There has been no significant reduction in insurance coverage from the previous year. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. 71 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2010 Note 13- Commitments and Contingencies: Grants Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of Florida. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. Litigation - The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. Commitments Under Construction Contracts - At September 30, 2010, the City had entered into construction contracts in the amount of $654 Transportation Impact Fee Credits - The City has entered into a number of agreements with developers under which the developer donates transportation infrastructure improvements or rights of way to the City and receives credit for future transportation impact fee payments. As of September 30, 2010, credit balances for future impact fees total approximately $366,507. Note 14 - Evaluation of Subsequent Events: The City has evaluated subsequent events through February 23, 2011, the date the financial statements were available to be issued. 72 This page intentionally left blank, /�4 F� Z53 4 ,'�K �Zo o� REQUIRED SUPPLEMENTARY INFORMATION CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2010 Defined Benefit Pension Trust Fund Schedule of Funding Progress (exaressed in Thousands) Schedule of Employer Contributions Annual Fiscal Required Percentage Year Contribution Actual of ARC Ending (ARC) Contribution Contributed 9/30/2004 $ 1,156, 923 Actuarial 87.6% 9/30/2005 1 UAAL as a 88.5 Actuarial Accrued 1 96.2 9/30/2007 % of Actuarial Value of Liability (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (a /b) ( c) (b -a) / c 10/1/2004 $ 8 $ 10 $ 2 70.0% $ 8 30.0% 10/1/2005 9 13 3 73.7 9 35.8 10/1/2006 11 16 4 74.5 10 39.0 10/1/2007 15 20 4 77.2 11 41.0 10/1/2008 18 32 13 57.8 10 126.9 10/1/2009 20 37 16 55.2 10 156.8 Schedule of Employer Contributions Annual Fiscal Required Percentage Year Contribution Actual of ARC Ending (ARC) Contribution Contributed 9/30/2004 $ 1,156, 923 $ 1 87.6% 9/30/2005 1 1 88.5 9/30/2006 1 1 96.2 9/30/2007 1 1 102.0 9/30/2008 2 2 100.2 9/30/2009 1 1 100.0 73 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2010 Retiree Continuation Insurance Plan Schedule of Fundina Proaress ** initial valuation date Schedule of Contributions from Employers and Other Contributing Entities Percentage Annual Required of ARC Net OPEB Fiscal Year Ending Contribution (ARC) Contributed Obligation 9/30/2009 $ 93 17.0% $ 77 9/30/2010 98 16.0% 155 74 Actuarial UAAL as a Actuarial Accrued % of Actuarial Value of Liability (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (a /b) (c) (b -a) / c 7/1/2009 $ - $ 505 $ 505 0.0% $ 9 5.5% ** initial valuation date Schedule of Contributions from Employers and Other Contributing Entities Percentage Annual Required of ARC Net OPEB Fiscal Year Ending Contribution (ARC) Contributed Obligation 9/30/2009 $ 93 17.0% $ 77 9/30/2010 98 16.0% 155 74 This page intentionally left blank, /�4 F� Z53 4 ,'�K �Zo o� COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This pave intentionally left blankL U * � �LOR10.% MAJOR GOVERNMENTAL FUNDS Debt Service Fund TLBD Debt Service Fund - This fund was established to account for the accumulation of principal and interest for the 2001 special assessment bond issue. This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA TLBD DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN For The Year Ended September 30, 2010 75 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Impact fees /assessments $ 165 $ 165 $ 55 7 000 $ (110, 698) Investment income 875 875 100 99 Miscellaneous - - 14 14 Total revenues 166 166 169 3 Expenditures: Current: Physical environment 5 7 6 691 Debt Service Principal 55 55 55 - nterest and other charges 97 97 97 42 Total expenditures 157 160 159 733 Excess (Deficiency) of Revenues Over Expenditures 8 6 10 4 Net Change in Fund Balances 8 6 10 4 Fund Balances - Beginning 193 193 193 - Fund Balances - Ending $ 202 $ 200 $ 204 $ 4 75 This pave intentionally left blankL U * � �LOR10.% NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Police Education Fund - This fund is used to account for the costs of educational expenses for police officers. It is funded by a portion of the collections from fines and forfeitures. Special Law Enforcement - This fund was established to receive revenues from local Trust Fund - Local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes. Such purposes may include drug education programs such as DARE. Transportation - Revenues in this fund are derived from Local Option Improvement Fund Gasoline Tax distribution. Proceeds are to be used for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. Transportation Impact Fee - This fund is used to account for collected impact fees on Fund new development to defray the cost of future road construction as a result of growth. Police Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of police service due to future g rowt h. Fire Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of fire service due to future g rowt h. Parks Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to develop and improve the parks due to future g rowt h. Public Buildings Impact Fee - This fund is used to account for collected impact fees on Fund new development to defray the cost of capital investment needed to maintain public buildings due to future growth. Medical Transport Services - This fund is used to receive revenues generated from fees Fund charged for paramedic services. The proceeds from this fund are used to pay for the incremental costs related to providing these services. Arbor Fund - This fund is used to account for arbor revenues. This revenue source is used to maintain a level of plantings in the City. NONMAJOR GOVERNMENTAL FUNDS - Continued Special Revenue Funds - Continued TLBD Maintenance Fund - This fund is used to account for collected special assessments for maintenance related to the Tuscawilla Lighting and Beautification District for Phases I and II of project. Phase II was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance - This fund is used to account for collected special Fund assessments for maintenance related to the Oak Forest subdivision wall. Emergency and Disaster - This fund is used to account for costs of preparation for Relief Fund and cleanup after the hurricanes of 2004. Special Law Enforcement - This fund was established to receive revenues from Trust Fund - Federal federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes. Such purposes may include drug education programs such as DARE. HOA Projects - - This fund is used to account for costs of projects for Streetlighting and Homeowners Associations such as streetlighting and Signage Fund signage. Storm Reserve Fund - This fund is used to account for reserves set aside from monthly Solid Waste /Recycling fees to cleanup from future storms. Electric Franchise Fee Fund - This fund is used to account for proceeds of electric franchise fees. These proceeds are used to pay annual debt service. Any excess monies not used to pay debt service are transferred to the General Fund. Fire Assessment Fund - This fund is used to account for collected special assessments for fire operation expenses. The proceeds are transferred to the General Fund to offset fire operations expenses. Veteran's Memorial Fund - This fund is used to account for funds collected to pay for engraving honoree's name in the granite Memorial Name Stand and the on -going maintenance and operation of the Veteran's Memorial. HOA Projects - - This fund is used to account for costs of projects for Streetlighting and Signage Homeowners Associations such as streetlighting and Fund (Non - escrow) signage for non - interest bearing projects. NONMAJOR GOVERNMENTAL FUNDS - Continued Debt Service Funds 1999 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1999 bond issue. 2003 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue. Oak Forest Debt Service - This fund is used to account for the accumulation of Fund resources and payment of principal and interest for the 2000 note payable (Oak Forest portion). Central Winds G.O. Debt - This fund is used to account for accumulation of resources Service Fund and payment of principal and interest for the 2002 limited general obligation bond. 2004 Capital Projects Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the Capital Improvement Revenue Note Series 2004. TLBD Phase II Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the TLBD Phase 11 Improvements. This pave intentionally left blankL U * � �LOR10.% NONMAJOR GOVERNMENTAL FUNDS - Continued 1999 Construction Capital Projects Fund Revolving Rehab Capital Projects Fund City Hall Expansion Capital Projects Fund Public Facilities Fund Capital Projects Funds - This fund was established for the acquisition and construction of City - owned Capital Improvements. - This fund was established to provide loans for rehabilitation projects within the City. - This fund was established to account for expansion of City Hall. - This fund was established to account for construction of additional public facilities. Liabilities and Fund Balances: Accounts payable CITY OF WINTER SPRINGS, FLORIDA 1 $ 5 Due to other funds COMBINING BALANCE SHEET - - Due to other governments NONMAJOR GOVERNMENTAL FUNDS - - Deferred revenue September 30, 2010 - - Other payables Special Revenue - - Special Law - 179 1 5 Police Enforcement Transportation Transportation Education Trust Fund- Improvement Impact Fee - - Fund Local Fund Fund Assets: 597 549 Total fund balances Cash and cash equivalents $ 8 $ 9 $ 147 $ 142 Investments 24 28 428 413 Receivables, net 1 4 23 - Special assessments receivable - - - - Total assets $ 34 $ 43 $ 598 $ 555 Liabilities and Fund Balances: Accounts payable $ - $ 179 $ 1 $ 5 Due to other funds - - - - Due to other governments - - - - Deferred revenue - - - - Other payables - - - - Total liabilities - 179 1 5 Fund balances: Reserved for Debt service - - - - Unreserved 34, 040 43 597 549 Total fund balances 34 43 597 549 Total liabilities and fund balances $ 34 $ 43 $ 598 $ 555 a L11801 Special Revenue 77 Public Buildings Police Impact Fire Impact Parks Impact Impact Fee Fee Fund Fee Fund Fee Fund Fund $ 28 $ 259 $ 4 $ 100 83 754 11 291 $ 112 $ 1 $ 16 $ 391 $ 38 38 - - - 74 1 16 391 74 1 16 391 $ 112 $ 1 $ 16 $ 391 (Continued) 77 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2010 Special Revenue Medical TLBD Transport Maintenance Oak Forest Services Fund Arbor Fund Fund Maintenance Fund Assets: Cash and cash equivalents $ 150 $ 59 $ 81 $ 9 Investments 437 172 237 28 Receivables, net - 57 5 899 Special assessments receivable - - - - Total assets $ 587 $ 288 $ 324 $ 39 Liabilities and Fund Balances: Accounts payable $ - $ - $ 10 7 078 $ 333 Due to other funds - - - - Due to other governments - - - - Deferred revenue - - - - Other payables - - - - Total liabilities - - 10 333 Fund balances: Reserved for Debt service - - - - Unreserved 587, 593 288 314 39 Total fund balances 587 288 314 39 Total liabilities and fund balances $ 587 $ 288 $ 324 $ 39 78 Special Revenue Emergency and Special Law HOA Projects - Disaster Relief Enforcement Trust Streetlighting and Storm Reserve Fund Fund - Federal Sinage Fund Fund $ 157 $ 9 $ 1 $ 144 459 29 4 421 - 371 - - $ 616 $ 39 $ 5 $ 566 $ 26 $ 997 $ 70 $ - 158 - - - 184 997 70 - 432 38 5 566 432 38 5 566 $ 616 $ 39 $ 5 $ 566 (Continued) 79 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2010 LOOK Special Revenue HOA Projects - Veterans Streetlighting and Fire Memorial Sinage Fund (Non- Assessment Total Special Fund escrow) Fund Revenue Assets: Cash and cash equivalents $ 5 $ 1 $ 157 $ 1 Investments 17 4 457 3 Receivables, net - - - 93 Special assessments receivable - - - - Total assets $ 22 $ 6 $ 614 $ 5 Liabilities and Fund Balances: Accounts payable $ - $ - $ 614 $ 84 Due to other funds - - - - Due to other governments - - - 158 Deferred revenue - - - - Other payables - 6 - 6 Total liabilities - 6 614 248 Fund balances: Reserved for Debt service - - - - Unreserved 22, 896 - - 5, 017, 309 Total fund balances 22 - - 5 Total liabilities and fund balances $ 22 $ 6 $ 614 $ 5 LOOK Debt Service 81 Oak Forest Central Winds 2003 Debt 1999 Debt Debt Service GO Debt Service Service Fund Service Fund Fund Fund $ 774 $ 136 $ 1 $ 9 4 2 5 27 - - 946 1 - - 491 - $ 779, 389 $ 139 $ 500 $ 38 - - 318 - - - 491 - - - 810 - 779 139 (310, 251) 38 779 139 (310, 251) 38 $ 779 $ 139 $ 500 $ 38 (Continued) 81 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2010 82 Debt Service 2004 Capital Projects Debt TLBD Phase II Service Fund Debt Service Fund Total Assets: Cash and cash equivalents $ - $ 6 $ 928 Investments - 18 58 Receivables, net - 352 2 Special assessments receivable - 267 759 Total assets $ - $ 292 $ 1 Liabilities and Fund Balances: Accounts payable $ - $ - $ - Due to other funds - - 318 Due to other governments - - - Deferred revenue - 267 759 Other payables - - - Total liabilities - 267 1 Fund balances: Reserved for Debt service - 24 671 Unreserved - - - Total fund balances - 24 671 Total liabilities and fund balances $ - $ 292 $ 1 82 Capital Projects 83 1999 City Hall Construction Revolving Expansion Public Fund Rehab Fund Fund Facilities Fund $ 231 $ 261 $ 2 $ 243 673 760 7 706 $ 905 $ 1 $ 10 $ 949 905 1 10 949 905 1 10 949 $ 905 $ 1 $ 10 $ 949 (Continued) 83 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2010 Assets: Cash and cash equivalents Investments Receivables, net Special assessments receivable Total assets Liabilities and Fund Balances: Accounts payable Due to other funds Due to other governments Deferred revenue Other payables Total liabilities Fund balances: Reserved for Debt service Unreserved Total fund balances Total liabilities and fund balances Capital Projects 84 Nonmajor Total Governmental Funds $ 738 $ 2 2 6 - 96,627 - 759 $ 2 $ 9 $ - $ 84 - 318,464 - 158 - 759 - 6 - 1 - 671 2 7 2 8 $ 2 $ 9 84 This pave intentionally left blankL U * � �LOR10.% 85 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2010 Special Revenue Special Law Transportation Police Education Enforcement Trust Improvement Transportation Fund Fund- Local Fund Impact Fee Fund Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - - Intergovernmental revenues - - 506,502 - Charges for services - - 13,189 - Fines and forfeitures 12,922 54,632 - - Impact fees /assessments - - - 38,777 Investment income 261 483 7,245 8,071 Miscellaneous 10,826 4,641 48,469 - Total revenues 24,009 59,756 575,405 46,848 Expenditures: Current: General government - - - - Public safety 8,551 13,646 - - Physical environment - - 114,327 - Debt Service: Principal - - - - Interest and fiscal charges - - - - Capital Outlay: Public safety - - - - Physical environment - - 310,613 22,864 Total expenditures 8,551 13,646 424,940 22,864 Excess (Deficiency) of Revenues Over Expenditures 15,458 46,110 150,465 23,984 Other Financing Sources (Uses): Transfers in - - - - Transfers out - (22,000) - - Total other financing sources(uses) - (22,000) - - Net Change in Fund Balances 15,458 24,110 150,465 23,984 Fund Balances - Beginning 18,582 19,134 447,224 525,961 Fund Balances - Ending $ 34,040 $ 43,244 $ 597,689 $ 549,945 85 Special Revenue - - - - 12,706 - - - - - - 33,903 59,128 - - - - - 59,128 - - - Medical 33,903 Police Impact Fire Impact Fee Parks Impact Public Buildings Transport 30,614 Fee Fund Fund Fee Fund Impact Fee Fund Services Fund Arbor Fund - - - - - 13,540 - - - - - 18,537 - - - - - 40,000 6,475 15,863 8,400 11,336 - - 1,737 14,751 118 5,661 8,581 3,671 - - - - 677 1,050 8,212 30,614 8,518 16,997 9,258 76,798 - - - - 12,706 - - - - - - 33,903 59,128 - - - - - 59,128 - - - 12,706 33,903 (50,916) 30,614 8,518 16,997 (3,448) 42,895 16,997 42,895 8,518 (3,448) (50,916) 30,614 125,096 983,699 7,510 374,533 591,041 246,038 $ 74,180 $ 1,014,313 $ 16,028 $ 391,530 $ 587,593 $ 288,933 (Continued) • • CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2010 Special Revenue Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Debt Service: Principal Interest and fiscal charges Capital Outlay: Public safety Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources(uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending TLBD O Oak Forest E Emergency and S Special Law Maintenance M Maintenance D Disaster Relief E Enforcement Trust Fund F Fund F Fund F Fund - Federal 333,952 498,264 53,275 - 8,516 802 10,376 12,500 - - 49,771 513 519,280 54,077 344,328 50,284 542,763 33,684 542,763 33,684 (23,483) 20,393 (57,719) (12,616) (57,719) (12,616) (81,202) 7,777 - 11,019 56,971 - 56,971 11,019 287,357 39,265 - (15,352) - (15,352) 287,357 23,913 145,002 14,521 $ 314,599 $ 39,447 $ 432,359 $ 38,434 87 - 11,019 56,971 - 56,971 11,019 287,357 39,265 - (15,352) - (15,352) 287,357 23,913 145,002 14,521 $ 314,599 $ 39,447 $ 432,359 $ 38,434 87 $ 314,599 $ 39,447 $ 432,359 $ 38,434 87 Special Revenue HOA Projects - Streetlighting and Sinage Veterans Memorial Fire Assessment Fund Storm Reserve Fund Fund Fund - 13 - - - - - 135 82 7,070 346 651 - - 1,700 - 82 7,083 2,046 786 - - 910 - 70 - - - 70 - 910 - 12 7,083 1,136 786 - 132,370 - - - - (2,000) (24,824) - 132,370 (2,000) (24,824) 12 139,453 (864) (24,038) 5,529 427,085 23,760 24,038 $ 5,541 $ 566,538 $ 22,896 $ - (Continued) .. CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2010 Special Revenue Debt Service Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Debt Service: Principal Interest and fiscal charges Capital Outlay: Public safety Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources(uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Electric 2003 Debt 1999 Debt Franchise Fee Total Service Fund Service Fund 2,173,849 2,187,389 - 859,004 - 13,189 - 157,325 - 632,525 9 17n R1 1 n.r; 2,176,019 4,010,400 F 1 F4 6,164 1 nq4 1,094 - 910 - - - 45,922 - - - 781,718 - - - - 645,000 75,000 - - 235,041 83,492 .)q 1 9R - - - 1,221,155 880,041 158,492 2,176,019 2,789,245 (873,877) (157,398) - 132,370 (2,176,019) (2,310,530) (2,176,019) (2,178,160) - 611,085 :T:T:ViTiTi WIVITiTIN 888,000 14,123 20,602 $ - $ 5,017,309 $ 779,389 $ 139,362 178,000 Debt Service 2004 Capital Oak Forest Debt Central Winds GO Projects Debt TLBD Phase II Debt 28,954 Service Fund Debt Service Fund Service Fund Service Fund Total $ - $ 193,396 $ - $ - $ 193,396 15,491 - - 18,410 33,901 21,739 1,712 21 10,088 40,818 22,179 - - 12,928 35,107 59,409 195,108 21 41,426 303,222 - - - 978 978 6,434 - - - 6,434 354,669 75,000 655,965 18,410 1,824,044 15,360 145,938 2,226 9,566 491,623 376,463 220,938 658,191 28,954 2,323,079 (317,054) (25,830) (658,170) 12,472 (2,019,857) - 28,100 650,854 - 1,744,954 - 28,100 650,854 - 1,744,954 (317,054) 2,270 (7,316) 12,472 (274,903) 6,803 36,610 7,316 12,134 946,889 $ (310,251) $ 38,880 $ - $ 24,606 $ 671,986 (Continued) CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2010 Capital Projects 1999 City Hall Construction Revolving Rehab Expansion Public Facilities Fund Fund Fund Fund Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - - Intergovernmental revenues - - - - Charges for services - - - - Fines and forfeitures - - - - Impact fees /assessments - - - - Investment income 13,301 15,023 152 14,509 Miscellaneous - - - - Total revenues 13,301 15,023 152 14,509 Expenditures: Current: General government - 1,281 - - Public safety - - - - Physical environment - - - - Debt Service: Principal - - - - Interest and fiscal charges - - - - Capital Outlay: Public safety - - - - Physical environment 7,176 - - - Total expenditures 7,176 1,281 - - Excess (Deficiency) of Revenues Over Expenditures 6,125 13,742 152 14,509 Other Financing Sources (Uses): Transfers in - - - - Transfers out (78) - - - Total other financing sources(uses) (78) - - - Net Change in Fund Balances 6,047 13,742 152 14,509 Fund Balances - Beginning 899,375 1,008,605 10,214 935,443 Fund Balances - Ending $ 905,422 $ 1,022,347 $ 10,366 $ 949,952 (Continued) 91 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2010 Capital Projects Nonmajor Governmental Total Funds Revenues: Taxes: Property taxes $ - $ 193,396 Permits and fees - 2,187,389 Intergovernmental revenues - 859,004 Charges for services - 13,189 Fines and forfeitures - 157,325 Impact fees /assessments - 666,426 Investment income 42,985 164,908 Miscellaneous - 114,970 Total revenues 42,985 4,356,607 Expenditures: Current: General government 1,281 3,169 Public safety - 45,922 Physical environment - 788,152 Debt Service: - Principal - 1,824,044 Interest and fiscal charges - 491,623 Capital Outlay: Public safety - 59,128 Physical environment 7,176 340,653 Total expenditures 8,457 3,552,691 Excess (Deficiency) of Revenues Over Expenditures 34,528 803,916 Other Financing Sources (Uses): Transfers in - 1,877,324 Transfers out (78) (2,310,608) Total other financing sources(uses) (78) (433,284) Net Change in Fund Balances 34,450 370,632 Fund Balances - Beginning 2,853,637 8,206,750 Fund Balances - Ending $ 2,888,087 $ 8,577,382 92 CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 93 Variance with Final Budgeted Amounts Budget - Positive Original Final Actual Amounts (Negative) Revenues: Fines and forfeitures $ 16,000 $ 16,000 $ 12,922 $ (3,078) Investment income 60 60 261 201 Miscellaneous 12,000 12,000 10,826 (1,174) Total revenues 28,060 28,060 24,009 (4,051) Expenditures: Current: Public Safety 25,000 25,000 8,551 16,449 Total expenditures 25,000 25,000 8,551 16,449 Excess (Deficiency) of Revenues Over Expenditures 3,060 3,060 15,458 12,398 Net change in fund balances 3,060 3,060 15,458 12,398 Fund balances - beginning 18,582 18,582 18,582 - Fund balances - ending $ 21,642 $ 21,642 $ 34,040 $ 12,398 93 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - LOCAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 94 Variance with Final Budgeted Amounts Budget - Positive Original Final Actual Amounts (Negative) Revenues: Fines and forfeitures $ - $ 49 $ 54 $ 5 Investment income 50 50 483 433 Miscellaneous - - 4 4 Total revenues 50 49 59 10,706 Expenditures: Current: Public Safety 11 14 13 1 Total expenditures 11 14 13 1 Excess (Deficiency) of Revenues Over Expenditures (10, 950) 34 46 11 Other Financing Sources (Uses) Transfers out - (22 (22 - Total other financing sources and uses - (22 (22 - Net change in fund balances (10 12 24 11 Fund balances - beginning 19 19 19 - Fund balances - ending $ 8 $ 31 $ 43 $ 11 94 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 95 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Intergovernmental revenues $ 484,758 $ 484,758 $ 506,502 $ 21 Charges for services 13 13 13 - Investment income 2 2 7 4 Miscellaneous - - 48 48 Total revenues 500 500 575 75 Expenditures: Current: Physical environment 164 164 114 50 Capital Outlay Physical environment 329 329 310 19 Total expenditures 494 494 424 69 Excess (Deficiency) of Revenues Over Expenditures 5 5 150 144 Other Financing Sources (Uses) Transfers out (100, 000) (100, 000) - 100 Total other financing sources and uses (100 (100 - 100 Net change in fund balances (94 (94 150 244 Fund balances - beginning 447 447 447 - Fund balances - ending $ 352 $ 352 $ 597 $ 244 95 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 •e Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ - $ - $ 38,777 $ 38,777 Investment income 1,025 1,025 8,071 7,046 Total revenues 1,025 1,025 46,848 45,823 Expenditures: Current: Physical environment 11,000 11,000 - 11,000 Capital Outlay Physical environment 70,000 70,000 22,864 47 Total expenditures 81 81 22 58 Excess (Deficiency) of Revenues Over Expenditures (79, 975) (79, 975) 23 103 Net change in fund balances (79 (79 23 103 Fund balances - beginning 525 525 525 - Fund balances - ending $ 445 $ 445 $ 549 $ 103 •e CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 97 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ - $ - $ 6,475 $ 6,475 Investment income 900 900 1 837 Total revenues 900 900 8 7 Expenditures: Capital Outlay Public Safety 38 62 59 2 Total expenditures 38 62 59 2 Excess (Deficiency) of Revenues Over Expenditures (37, 645) (61 (50, 916) 10 Net change in fund balances (37 (61 (50 10 Fund balances - beginning 125 125 125 - Fund balances - ending $ 87 $ 63 $ 74 $ 10 97 CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Me Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ - $ - $ 15,863 $ 15,863 Investment income 7,300 7,300 14 7 Total revenues 7 7 30 23 Excess (Deficiency) of Revenues Over Expenditures 7 7 30 23 Net change in fund balances 7 7 30 23 Fund balances - beginning 983 983 983 - Fund balances - ending $ 990 $ 990 $ 1 $ 23 Me CITY OF WINTER SPRINGS, FLORIDA PARKS IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ - $ - $ 8,400 $ 8,400 Investment income 50 50 118 68 Total revenues 50 50 8,518 8,468 Excess (Deficiency) of Revenues Over Expenditures 50 50 8,518 8,468 Net change in fund balances 50 50 8,518 8,468 Fund balances - beginning 7,510 7,510 7,510 - Fund balances - ending $ 7,560 $ 7,560 $ 16,028 $ 8,468 CITY OF WINTER SPRINGS, FLORIDA PUBLIC BUILDINGS IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 100 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ - $ - $ 11,336 $ 11,336 Investment income 2,800 2,800 5,661 2,861 Total revenues 2,800 2,800 16,997 14 Excess (Deficiency) of Revenues Over Expenditures 2 2 16 14 Net change in fund balances 2 2 16 14 Fund balances - beginning 374 374 374 - Fund balances - ending $ 377 $ 377 $ 391 $ 14 100 CITY OF WINTER SPRINGS, FLORIDA MEDICAL TRANSPORT SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 101 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 4,300 $ 4,300 $ 8,581 $ 4 Miscellaneous - - 677 677 Total revenues 4 4 9 4 Expenditures: Current: Public Safety - 13 12 644 Total expenditures - 13 12 644 Excess (Deficiency) of Revenues Over Expenditures 4 (9, 050) (3, 448) 5 Net change in fund balances 4 (9 (3 5 Fund balances - beginning 591 591 591 - Fund balances - ending $ 595 $ 581 $ 587 $ 5 101 CITY OF WINTER SPRINGS, FLORIDA ARBOR FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Permits and fees $ 15,000 $ 15,000 $ 13,540 $ (1,460) Intergovernmental revenues - 18,537 18,537 - Fines and forfeitures 500 500 40,000 39,500 Investment income 1,800 1,800 3,671 1,871 Miscellaneous - 1,050 1,050 - Total revenues 17,300 36,887 76,798 39,911 Expenditures: Current: Physical environment 16,990 37,077 33,903 3,174 Capital Outlay Physical environment 1,000 500 - 500 Total expenditures 17,990 37,577 33,903 3,674 Excess (Deficiency) of Revenues Over Expenditures (690) (690) 42,895 43,585 Net change in fund balances (690) (690) 42,895 43,585 Fund balances - beginning 246,038 246,038 246,038 - Fund balances - ending $ 245,348 $ 245,348 $ 288,933 $ 43,585 102 CITY OF WINTER SPRINGS, FLORIDA TLBD MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 495,000 $ 495,000 $ 498,264 $ 3,264 Investment income 3,100 3,100 8,516 5,416 Miscellaneous - 12,500 12,500 - Total revenues 498,100 510,600 519,280 8,680 Expenditures: Current: Physical environment 571,350 583,850 542 41 Total expenditures 571 583 542 41 Excess (Deficiency) of Revenues Over Expenditures (73 (73 (23 49 Other Financing Sources (Uses) Transfers out (60 (57 (57 - Total other financing sources and uses (60 (57 (57 - Net change in fund balances (133 (130 (81 49 Fund balances - beginning 395 395 395 - Fund balances - ending $ 262 $ 264 $ 314 $ 49 103 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 52,940 $ 52,940 $ 53,275 $ 335 Investment income 225 225 802 577 Total revenues 53,165 53,165 54,077 912 Expenditures: Current: Physical environment 40,300 40,300 33,684 6,616 Total expenditures 40,300 40,300 33,684 6,616 Excess (Deficiency) of Revenues Over Expenditures 12,865 12,865 20,393 7,528 Other Financing Sources (Uses) Transfers out (13,227) (12,616) (12,616) - Total other financing sources and uses (13,227) (12,616) (12,616) - Net change in fund balances (362) 249 7 7 Fund balances - beginning 31 31 31 - Fund balances - ending $ 31 $ 31 $ 39 $ 7 104 CITY OF WINTER SPRINGS, FLORIDA EMERGENCY AND DISASTER RELIEF FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 105 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Intergovernmental revenues $ - $ - $ 333,952 $ 333,952 Investment income 1,000 1,000 10,376 9,376 Total revenues 1,000 1,000 344,328 343,328 Expenditures: Current: Physical environment 3,000 57,350 56,971 379 Total expenditures 3,000 57,350 56,971 379 Excess (Deficiency) of Revenues Over Expenditures (2,000) (56, 350) 287,357 343,707 Net change in fund balances (2,000) (56,350) 287,357 343,707 Fund balances - beginning 145,002 145,002 145,002 - Fund balances - ending $ 143,002 $ 88,652 $ 432,359 $ 343,707 105 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 106 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Fines and forfeitures $ - $ 49,000 $ 49,771 $ 771 Investment income 45 45 513 468 Total revenues 45 49,045 50,284 1 Expenditures: Current: Public Safety 10 13 11 1 Total expenditures 10 13 11 1 Excess (Deficiency) of Revenues Over Expenditures (10, 455) 36 39 3 Other Financing Sources (Uses) Transfers out - (15, 352) (15, 352) - Total other financing sources and use: - (15 (15 - Net change in fund balances (10 20 23 3 Fund balances - beginning 14 14 14 - Fund balances - ending $ 4 $ 35 $ 38 $ 3 106 CITY OF WINTER SPRINGS, FLORIDA HOA PROJECTS - STREETLIGHTING AND SINAGE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 40 $ 120 $ 82 $ (38) Total revenues 40 120 82 (38) Expenditures: Current: General government - - - - Total expenditures 48 124 70 54 Excess (Deficiency) of Revenues Over Expenditures (8) (4) 12 16 Net change in fund balances (8) (4) 12 16 Fund balances - beginning 5,529 5,529 5,529 - Fund balances - ending $ 5,521 $ 5,525 $ 5,541 $ 16 107 CITY OF WINTER SPRINGS, FLORIDA STORM RESERVE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 108 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Intergovernmental revenues $ - $ - $ 13 $ 13 Investment income 3,700 3,700 7,070 3,370 Total revenues 3,700 3,700 7,083 3,383 Excess (Deficiency) of Revenues Over Expenditures 3,700 3,700 7,083 3,383 Other Financing Sources (Uses) Transfers in 135,000 135,000 132,370 (2,630) Total other financing sources and uses 135,000 135,000 132,370 (2,630) Net change in fund balances 138,700 138,700 139,453 753 Fund balances - beginning 427,085 427,085 427,085 - Fund balances - ending $ 565,785 $ 565,785 $ 566,538 $ 753 108 CITY OF WINTER SPRINGS, FLORIDA VETERANS MEMORIAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 109 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 140 $ 140 $ 346 $ 206 Miscellaneous - 800 1 900 Total revenues 140 940 2 1 Expenditures: Current: General government - 910 910 - Total expenditures - 910 910 - Excess (Deficiency) of Revenues Over Expenditures 140 30 1 1 Other Financing Sources (Uses) Transfers out (2 (2 (2 - Total other financing sources and uses (2 (2 (2 - Net change in fund balances (1 (1 (864) 1 Fund balances - beginning 23 23 23 - Fund balances - ending $ 21 $ 21 $ 22 $ 1 109 CITY OF WINTER SPRINGS, FLORIDA FIRE ASSESSMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 110 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 74,053 $ - $ 135 $ 135 Investment income - 1,000 651 (349) Total revenues 74,053 1,000 786 (214) Excess (Deficiency) of Revenues Over Expenditures 74,053 1,000 786 (214) Other Financing Sources (Uses) Transfers out (93,721) (25,038) (24,824) 214 Total other financing sources and uses (93,721) (25,038) (24,824) 214 Net change in fund balances (19,668) (24,038) (24,038) - Fund balances - beginning 24,038 24,038 24,038 - Fund balances - ending $ 4,370 $ - $ - $ - 110 CITY OF WINTER SPRINGS, FLORIDA ELECTRIC FRANCHISE FEE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 111 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Taxes: Property taxes $ 1,885,000 $ 2,185, 000 $ 2,173, 849 $ (11,151) Investment income - - 2 2 Total revenues 1 2,185, 000 2,176, 019 (8, 981) Excess (Deficiency) of Revenues Over Expenditures 1 2,185, 000 2,176, 019 (8, 981) Other Financing Sources (Uses) Transfers out (1 885, 000) (2,185, 000) (2,176, 019) 8 Total other financing sources and uses (1 (2 (2 8 Net change in fund balances - - - - Fund balances - beginning - - - - Fund balances - ending $ - $ - $ - $ - 111 CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 112 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 3,000 $ 3,000 $ 6,164 $ 3,164 Total revenues 3,000 3,000 6,164 3,164 Expenditures: Debt Service: Principal 645,000 645,000 645,000 - Interest and other charges 235,600 235,600 235,041 559 Total expenditures 880,600 880,600 880,041 559 Excess (Deficiency) of Revenues Over Expenditures (877,600) (877,600) (873,877) 3,723 Other Financing Sources (Uses) Transfers in 888,000 888,000 888,000 - Total other financing sources and uses 888,000 888,000 888,000 - Net change in fund balances 10,400 10,400 14 3 Fund balances - beginning 765 765 765 - Fund balances - ending $ 775 $ 775 $ 779 $ 3 112 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 113 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 650 $ 650 $ 1,094 $ 444 Total revenues 650 650 1,094 444 Expenditures: Debt Service: Principal 75,000 75,000 75,000 - Interest and other charges 84,000 84,000 83,492 508 Total expenditures 159,000 159,000 158,492 508 Excess (Deficiency) of Revenues Over Expenditures (158, 350) (158, 350) (157, 398) 952 Other Financing Sources (Uses) Transfers in 178,000 178,000 178,000 - Total other financing sources and uses 178,000 178,000 178,000 - Net change in fund balances 19,650 19,650 20,602 952 Fund balances - beginning 118,760 118,760 118,760 - Fund balances - ending $ 138,410 $ 138,410 $ 139,362 $ 952 113 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 114 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 58,400 $ 58,400 $ 15,491 $ (42,909) Investment income 55 55 21 21 Miscellaneous - - 22 22 Total revenues 58 58 59 954 Expenditures: Current: Physical environment 5 7 6 1 Debt Service: Principal 355 355 354 331 Interest and other charges 14 14 15 (860) Total expenditures 374 377 376 987 Excess (Deficiency) of Revenues Over Expenditures (316 (318 (317 1 Other Financing Sources (Uses) Debt proceeds 317 317 - (317, 500) Total other financing sources and uses 317 317 - (317 Net change in fund balances 1 (1 (317 (315 Fund balances - beginning 6 6 6 - Fund balances - ending $ 7 $ 5 $ (310 $ (315 114 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS GO DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 115 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Taxes: Property taxes $ 191,987 $ 191,987 $ 193,396 $ 1 Investment income 625 625 1 1 Total revenues 192 192 195 2 Expenditures: Debt Service: Principal 75 75 75 - Interest and other charges 146 146 145 112 Total expenditures 221 221 220 112 Excess (Deficiency) of Revenues Over Expenditures (28 (28 (25 2 Other Financing Sources (Uses) Transfers in 28 28 28 - Total other financing sources and uses 28 28 28 - Net change in fund balances (338) (338) 2 2 Fund balances - beginning 36 36 36 - Fund balances - ending $ 36 $ 36 $ 38 $ 2 115 CITY OF WINTER SPRINGS, FLORIDA 2004 CAPITAL PROJECTS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 116 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ - $ - $ 21 $ 21 Total revenues - - 21 21 Expenditures: Debt Service: Principal 656,000 656,000 655,965 35 Interest and other charges 3,500 3,300 2 1 Total expenditures 659 659 658 1 Excess (Deficiency) of Revenues Over Expenditures (659 (659 (658 1 Other Financing Sources (Uses) Transfers in 652 652 650 (1 Total other financing sources and uses 652 652 650 (1 Net change in fund balances (7 (7 (7 (16) Fund balances - beginning 7 7 7 - Fund balances - ending $ (184) $ 16 $ - $ (16) 116 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 117 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 40,588 $ 40,588 $ 18,410 $ (22,178) Investment income 130 130 10,088 9,958 Miscellaneous - - 12,928 12,928 Total revenues 40,718 40,718 41 708 Expenditures: Current: General government 1 1 978 114 Debt Service: Principal 21 21 18 2 Interest and other charges 9 9 9 (166) Total expenditures 31 31 28 2 Excess (Deficiency) of Revenues Over Expenditures 8 8 12 3 Net change in fund balances 8 8 12 3 Fund balances - beginning 12 12 12 - Fund balances - ending $ 20 $ 20 $ 24 $ 3 117 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 118 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 3,300 $ 3,300 $ 13,301 $ 10,001 Total revenues 3,300 3,300 13,301 10,001 Expenditures: Capital Outlay Physical environment 1 1 7 1 Total expenditures 1,188, 750 1,177, 750 7 1,170, 574 Excess (Deficiency) of Revenues Over Expenditures (1 (1 6 1 Other Financing Sources (Uses) Transfers in 300 300 - (300, 000) Transfers out (11, 825) (11, 825) (78) 11, 747 Total other financing sources and uses 288 288 (78) (288 Net change in fund balances (897 (886 6 892 Fund balances - beginning 899 899 899 - Fund balances - ending $ 2 $ 13 $ 905 $ 892 118 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 119 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 7,500 $ 7,500 $ 15,023 $ 7,523 Total revenues 7,500 7,500 15,023 7,523 Expenditures: Current: General government 3,500 3,500 1 2 Total expenditures 3 3 1 2 Excess (Deficiency) of Revenues Over Expenditures 4 4 13 9 Net change in fund balances 4 4 13 9 Fund balances - beginning 1 1 1 - Fund balances - ending $ 1 $ 1 $ 1 $ 9 119 CITY OF WINTER SPRINGS, FLORIDA CITY HALL EXPANSION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Revenues: Investment income Total revenues Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) $ - $ - $ 152 $ 152 - - 152 152 - - 152 152 - - 152 152 10,214 10,214 10,214 - $ 10,214 $ 10,214 $ 10,366 $ 152 120 CITY OF WINTER SPRINGS, FLORIDA PUBLIC FACILITIES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2010 Revenues: Investment income Total revenues Expenditures: Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) $ 3,500 $ 3,500 $ 14,509 $ 11,009 3,500 3,500 14,509 1,139, 000 1,138, 942 - 1,139, 000 1,138, 942 - (1,135, 500) (1,135, 442) 14 200,000 200,000 (9:35, 5UU) 200,000 200,000 $ (57) $ (9:35,441) 14, 5U9 11,009 1,138,942 1,138,942 1,149, 951 (200 (200, 000) 949 1 $ 949,952 $ 949,951 121 This pave intentionally left blankL U * � �LOR10.% STATISTICAL SECTION This pave intentionally left blankL U * � �LOR10.% STATISTICAL SECTION This part of the City of Winter Springs' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall health. Contents Page Financial Trends 122 These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed over time. Revenue Capacity 129 These schedules contain information to help the reader assess the government's most significant local revenue. Debt Capacity 134 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. There are no limitations placed upon the amount of debt the City of Winter Springs may issue by either the City's Charter or the City's Code or by Florida Statutes. Demographic and Economic Information 140 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 142 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. This pave intentionally left blankL U * � �LOR10.% CITY OF WINTER SPRINGS, FLORIDA NET ASSETS BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business -type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $ 19,983 $ 22,686 $ 20,798 $ 26,523 $ 29,401 $ 37,530 $ 39,371 $ 40,701 $ 42,819 - 6,274 6,943 9,730 11,078 8,714 8,778 8,298 8,229 * 4r± ncn nn 1144 4 n 4110 n 0 -7 c 4n r•r1r1 4-7 Ann 4 n 114_0 4n -7114 4 n r3 An $ 36,042 $ 38,979 $ 41,869 $ 46,128 $ 54,145 $ 63,676 $ 62,617 $ 62,793 $ 65,397 $ 8,321 $ 10,108 $ 11,361 $ 11,521 $ 11,763 $ 12,679 $ 12,692 $ 13,039 $ 15,839 2,778 2,324 2,347 2,500 2,612 2,735 2,814 2,549 1,730 7,760 8,366 8,912 7,645 9,555 8,721 5,135 3,369 3,264 $ 18,859 $ 20,798 $ 22,620 $ 21,666 $ 23,930 $ 24,135 $ 20,641 $ 18,957 $ 20,833 $ 28,304 $ 32,794 $ 32,159 $ 38,044 $ 41,164 $ 50,209 $ 52,063 $ 53,740 $ 58,658 2,778 8,598 9,290 12,230 13,690 11,449 11,592 10,847 9,959 23,819 18,385 23,040 17,520 23,221 26,153 19,603 17,163 17,613 $ 54,901 $ 59,777 $ 64,489 $ 67,794 $ 78,075 $ 87,811 $ 83,258 $ 81,750 $ 86,230 Note Information not available prior to implementation of GASB Statement 34. 122 CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET ASSETS Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) 123 Fiscal Year Expenses 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Governmental activities: General government $ 5,177 $ 4,640 $ 5,421 $ 5,786 $ 7,732 $ 8,452 $ 6,857 $ 5,801 $ 5,720 Public safety 6,838 7,870 8,703 1 9,138 10,016 10,726 11,299 7,196 7,356 Physical environment 2,747 2,765 8,779 5,561 2,038 2,390 5,694 6,281 5,654 Culture and recreation 1,629 1,747 1,989 2,265 2,393 2,739 2,511 2,554 2,323 Interest and other fiscal charges on long -term debt 857 1,404 764 763 709 683 965 959 944 Total governmental activities expenses 17,248 18,426 25,656 23,513 22,888 24,990 27,326 22,791 21,997 Business -type activities: Water and Sewer 5,438 5,508 5,717 6,000 6,239 6,522 7,151 7,143 7,447 Development Services - 552 744 627 679 860 687 436 349 Stormwater 529 630 671 974 831 983 1,040 1,625 916 Total business -type activities expenses $ 5,967 $ 6,690 $ 7 $ 7,601 $ 7 $ 8,365 $ 8,878 $ 9,204 $ 8,712 Program Revenues Governmental activities: Charges for services: General government $ 1,793 $ 1,986 $ 1,924 $ 1,985 $ 472 $ 376 $ 2,008 $ 2,006 $ 2,378 Public safety 619 664 782 720 1,207 1,054 930 589 608 Physical environment 1,540 742 721 589 3,485 3,435 4,529 3,139 3,191 Culture and recreation 275 337 833 823 949 765 281 295 301 Operating grants and contributions 111 25 5,411 2,177 168 115 208 41 485 Capital grants and contributions 423 664 2,291 1,962 2,459 6,484 2,628 2,442 2,935 Total governmental activities program revenues 4,761 4,418 11,962 8,256 8,740 12,229 10,584 8,512 9,898 Business -type activities: Charges for services: Water and Sewer 5,676 6,142 7,026 7,256 7,837 7,589 7,252 7,339 8,015 Development Services - 1,539 2 1,324 1,008 2,482 923 573 269 331 Stormwater 413 604 577 754 1,149 1,070 1,074 1,063 1,051 Operating grants and contributions - - - 348 69 - - 483 - Capital grants and contributions 522 1,663 2,180 975 1,329 1,176 224 14 2,885 Total business -type activities program revenues 6,611 9,948 11,107 10,341 12,866 10,758 9,123 9,168 12,282 Total government program revenues $ 11,372 $ 14,366 $ 23,069 $ 18,597 $ 21,606 $ 22,987 $ 19,707 $ 17,680 $ 22,180 123 Note * Information not available prior to implementation of GASB Statement 34. The increase from prior period was caused by 2004 Hurricanes Charley, Frances & Jeanne, and accrued FEMA reimbursement. 2 Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety. 3 Franchise fees were classified as Taxes prior to Fiscal year 2008 and were previously shown as Franchise and utility taxes, which is now Utility taxes. 4 Business tax receipts (formerly known as Occupational licenses) were classified as Licenses and permits prior to fiscal year 2008. 124 Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Net (expense) /revenue Governmental activities $ (12,487) $ (14,008) $ (13,694) $ (15,257) $ (14,148) $ (12,761) $ (16,742) $ (14,279) $ (12,099) Business -type activities 644 3,258 3,975 2,740 5,117 2,393 245 (36) 3,570 Total government net expense $ (11,843) $ (10,750) $ (9,719) $ (12,517) $ (9,031) $ (10,368) $ (16,497) $ (14,315) $ (8,529) General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes $ 4,278 $ 5,057 $ 5,653 $ 6,198 $ 7,383 $ 8,266 $ 7,130 $ 5,013 $ 4,538 Utility taxes 4,998 4,765 4,807 4,984 5,751 5,841 3,976 4,106 4,536 Business tax receipts - - - - - - - 140 70 204 Intergovernmental revenues - unrestricted 4,783 5,229 3,243 3,681 3,971 3,752 3,445 2,960 2,897 Investment income and miscellaneous 576 462 587 687 1,708 1,619 675 614 731 Loss on disposal of capital assets - (57) - - - - - - - Transfers 1,152 1,489 2,294 3,967 3,352 2,813 2,189 1,691 1,796 Total governmental activities 15,787 16,945 16,584 19,517 22,165 22,291 17,555 14,454 14,702 Business -type activities: Investment income and miscellaneous 180 174 141 272 500 625 198 42 103 Loss on disposal of capital assets (210) (4) - - - - - - - Transfers (1,152) (1,489) (2,294) (3,967) (3,352) (2,813) (2,189) (1,691) (1,796) Total business -type activities (1,182) (1,319) (2,153) (3,695) (2,852) (2,188) (1,991) (1,649) (1,693) Total government $ 14,605 $ 15,626 $ 14,431 $ 15,822 $ 19,313 $ 20,103 $ 15,564 $ 12,805 $ 13,009 Change in Net Assets Governmental activities $ 3,300 $ 2,937 $ 2,890 $ 4,260 $ 8,017 $ 9,530 $ 813 $ 175 $ 2,603 Business -type activities (538) 1,939 1,822 (955) 2,265 205 (1,746) (1,685) 1,877 Total government $ 2,762 $ 4,876 $ 4,712 $ 3,305 $ 10,282 $ 9,735 $ (933) $ (1,510) $ 4,480 Note * Information not available prior to implementation of GASB Statement 34. The increase from prior period was caused by 2004 Hurricanes Charley, Frances & Jeanne, and accrued FEMA reimbursement. 2 Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety. 3 Franchise fees were classified as Taxes prior to Fiscal year 2008 and were previously shown as Franchise and utility taxes, which is now Utility taxes. 4 Business tax receipts (formerly known as Occupational licenses) were classified as Licenses and permits prior to fiscal year 2008. 124 CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Taxes included in Unrestricted Intergovernmental Revenues State Revenue Fiscal Year Sales Tax Sharing Other Total 2001 1,919 681 Business Tax 2,686 Fiscal Year Property Tax Franchise Tax Utility Tax Receipts 2 Total 2003 2,134 764 2001 3,626 1,587 2,493 - 7,706 2002 4,278 1,595 3,403 - 9,276 2003 5,057 1,304 3,461 - 9,822 2004 5,653 1,360 3,447 - 10,460 2005 6,198 1,480 3,504 - 11,182 2006 7,383 1,919 3,832 - 13,134 2007 8,265 1,921 3,920 - 14,106 2008 7,130 - 3,976 140 11,246 2009 5,013 - 4,106 70 9,189 2010 4,538 - 4,536 204 9,278 Taxes included in Unrestricted Intergovernmental Revenues State Revenue Fiscal Year Sales Tax Sharing Other Total 2001 1,919 681 86 2,686 2002 2,128 691 131 2,950 2003 2,134 764 136 3,034 2004 2,258 843 142 3,243 2005 2,447 1,076 158 3,681 2006 2,701 1,123 147 3,971 2007 2,443 1,108 201 3,752 2008 2,261 1,021 163 3,445 2009 1,944 907 109 2,960 2010 1,852 893 152 2,897 Note 1 Franchise fees were classified as taxes prior to fiscal year 2008 2 Business tax receipts (formerly known as Occupational licenses) were classified as licenses and permits prior to fiscal year 2008 125 CITY OF WINTER SPRINGS, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 126 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General fund Reserved $ 217 $ 54 $ 247 $ 264 $ 372 $ 455 $ 468 $ 301 $ 235 $ 518 Unreserved 3,213 4,873 5,563 4,892 5,479 7,802 8,631 8,800 8,544 8,275 Total general fund $ 3,430 $ 4,927 $ 5,810 $ 5,156 $ 5,851 $ 8,257 $ 9,099 $ 9,101 $ 8,779 $ 8,793 All other governmental funds Reserved $ 1,945 $ 865 $ 499 $ 874 $ 979 $ 1,058 $ 1,108 $ 1,159 $ 1,141 $ 876 Unreserved, reported in: Special revenue funds 3,593 4,105 4,437 4,384 4,794 6,770 6,691 6,647 6,724 7,438 Capital projects funds 4,328 3,009 2,841 2,818 5,664 5,830 3,553 3,852 2,854 2,888 Total all other governmental funds $ 9,866 $ 7,979 $ 7,777 $ 8,076 $ 11,437 $ 13,658 $ 11,352 $ 11,658 $ 10,719 $ 11,202 126 CITY OF WINTER SPRINGS, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 127 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Revenues Taxes Property $ 3,626 $ 4,278 $ 5,057 $ 5,653 $ 6,198 $ 7,384 $ 8,266 $ 6,912 $ 4,799 $ 4,345 Franchise 1,253 1,313 1,304 1,360 1,480 1,918 1,921 - 4 - - Utility 2,493 3,403 3,461 3,447 3,504 3,832 3,920 3,976 4,106 4,536 Special Assessments 3 86 3 356 3 299 3 301 3 319 3 552 3 - 3 - 3 - - General Obligation - - - 329 359 220 212 218 214 193 Business Tax - - - - - - - 140 5 71 204 Other 334 282 - - - - - - - - Licenses and Permits Franchise Fees - - - - - - - 1,788 4 1,924 2,313 Other 758 1,424 812 932 658 2,221 217 157 5 67 38 Intergovernmental 2 3,430 2 5,317 2 5,918 2 5,664 2 13,021 2 5,369 2 7,380 7,111 4,707 5,628 Charges for services 826 2,169 2,307 2,432 2,544 3,093 3,536 3,441 2,955 2,929 Fines and forfeitures 416 330 369 311 296 320 326 318 298 566 Impact fees /assessments 2 - 2 - 2 - 2 - 2 - 2 - 2 1,403 213 2,131 211 875 721 Investment income 598 448 425 343 573 1,218 1,477 521 214 439 Miscellaneous 131 129 372 244 444 546 170 175 399 292 Total revenues 13,951 19,449 20,324 21,016 29,396 26,673 28,828 26,888 20,629 22,204 Expenditures General government 3,484 4,996 4,611 4,861 5,603 5,035 5,780 6,046 5,804 5,401 Public safety 6,408 6,616 8,004 8,035 8,639 9,164 10,199 10,671 6,834 6,890 Physical Environment' 1,924 3,639 4,071 7,993 4,304 3,360 4,060 4,266 4,694 4,015 Culture and recreation 1,301 1,929 2,635 1,693 1,906 1,978 2,002 2,163 2,112 1,878 Capital outlay 1,112 4,910 362 4,752 2,186 4,521 9,801 4,740 2,787 2,738 Debt service Principal 654 612 926 1,807 5,898 1,153 911 967 1,091 1,996 Interest 735 856 946 700 771 700 693 665 640 594 Payments to escrow agent - - - - - - - - - - Other charges 88 84 186 - - 17 - - - - Total expenditures 15,706 23,642 21,741 29,841 29,307 25,928 33,446 29,518 23,962 23,512 Excess of revenues over (under) expenditures (1,755) (4,193) (1,417) (8,825) 89 745 (4,618) (2,630) (3,333) (1,308) 127 Other financing sources (uses) Transfers in 6,491 6,336 6,687 8,894 9,733 9,999 10,209 10,620 8,372 9,616 Transfers out (5,574) (5,185) (5,198) (6,600) (5,766) (6,647) (7,396) (8,432) (6,680) (7,811) Refunding bonds issued - - 8,870 - - - - - - - Bonds issued 2,241 3,400 - - - - - - - - Premium on bonds issued - - 106 - - - - - - - Discount on bonds issued - (23) - - - - - - - - Payments to refunded bond escrow agent - - (8,776) - - - - - - - Notes issued - - - 5,680 - 430 - 750 - - Refunding note issued - - - 496 - - - - - - Capital leases - - 409 - - 100 341 - - - Sale of capital assets - - - - - Total other financing sources (uses) 3,158 4,528 2,098 8,470 3,967 3,882 3,154 2,938 1,692 1,805 Prior Period Fund Balance Adjustment 722 (574) 380 Net change in fund balances $ 2,125 $ (239) $ 681 $ (355) $ 4,056 $ 4,627 $ (1,464) $ 308 $ (1,261) $ 497 Debt service as a percentage of noncapital 10.59% 8.54% 9.69% 11.10% 32.61% 9.48% 7.28% 6.59% 8.21% 12.47% expenditures Note Classified as Transportation prior to 2000 2 Impact Fees classified as Intergovernmental Revenue prior to fiscal year 2007. 3 Special Assessments classified as Taxes prior to fiscal year 2007. 4 Franchise fees were classified as Taxes prior to fiscal year 2008 5 Business Tax receipts (formerly known as Occupational Licenses) were classified as Licenses and permits prior to fiscal year 2008 128 CITY OF WINTER SPRINGS, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) 129 Real Property Fiscal Year Total Residential Assessed Value Ended and Commercial Residential % Commercial % Personal Centrally Tax Exempt Real Total Taxable Total Direct Tax Estimated Actual as a Percentage September 30, Real Property' Property' Residential Property' Commercial Property' Assessed' Property' Assessed Value' Rate Taxable Value' of Actual Value 2001 1,324,355 1,196,041 90.31% 128,314 9.69% 40,568 34 299,567 1,065,390 3.5400 1,395,662 76.34% 2002 1,499,314 1,345,412 89.74% 153,902 10.26% 45,241 30 359,845 1,184,740 3.7708 1,580,947 74.94% 2003 1,642,139 1,473,685 89.74% 168,454 10.26% 43,759 31 418,960 1,266,969 4.1658 1,699,497 74.55% 2004 1,826,180 1,652,632 90.50% 173,548 9.50% 45,709 48 505,952 1,365,985 4.5500 1,916,005 71.29% 2005 2,007,522 1,833,417 91.33% 174,105 8.67% 49,733 55 574,194 1,483,116 4.5500 2,080,192 71.30% 2006 2,331,039 2,088,308 89.59% 242,731 10.41% 58,571 33 728,569 1,661,074 4.7500 2,458,480 67.57% 2007 3,131,636 2,792,826 89.18% 338,810 10.82% 67,509 33 1,195,372 2,003,806 4.4019 3,176,939 63.07% 2008 3,519,584 3,161,336 89.82% 358,248 10.18% 63,154 40 1,362,256 2,220,522 3.3518 3,716,575 59.75% 2009 3,238,332 2,847,791 87.94% 390,541 12.06% 63,531 41 1,292,735 2,009,169 2.5814 3,400,519 59.08% 2010 2,695,560 2,353,321 87.30% 342,239 12.70% 67,145 42 952,939 1,809,808 2.5814 2,804,819 64.52% Note ' Source: Seminole County Property Appraiser (www.scpafl.org) 2 Source: Seminole County Tax Collector (www.seminoletax.org) 129 CITY OF WINTER SPRINGS, FLORIDA Winter Springs Fiscal Year PROPERTY TAX RATES DIRECT AND OVERLAPPINd GOVERNMENTS Last Ten Fiscal Years 2 Overlapping Rates St. John's Seminole County School District Water Debt Debt Total Debt Total Manage- County Fire Total Direct Operating Service Total City Operating Service County Operating Service School ment Protection & Overlap - Millage Millage Millage Millage Millage Millage Millage Millage Millage District (MSTU) ping Rates 2001 3.5400 0.0000 3.5400 4.9989 0.1083 5.1072 8.6550 0.6900 9.3450 0.4720 0.0000 18.4642 2002 3.7708 0.0000 3.7708 4.9989 0.2208 5.2197 8.5230 0.6390 9.1620 0.4620 0.0000 18.6145 2003 4.1658 0.0000 4.1658 4.9989 0.2086 5.2075 8.4790 0.5210 9.0000 0.4620 0.0000 18.8353 2004 4.3000 0.2500 4.5500 4.9989 0.1910 5.1899 8.2410 0.4950 8.7360 0.4620 0.0000 18.9379 2005 4.3000 0.2500 4.5500 4.9989 0.1721 5.1710 8.1270 0.3850 8.5120 0.4620 0.0000 18.6950 2006 4.6126 0.1374 4.7500 4.9989 0.2041 5.2030 7.9650 0.0000 7.9650 0.4620 0.0000 18.3800 2007 4.2919 0.1100 4.4019 4.9989 0.1451 5.1440 7.7530 0.0000 7.7530 0.4620 0.0000 17.7609 2008 3 3.2496 0.1022 3.3518 4.3578 0.1451 4.5029 7.4130 0.0000 7.4130 0.4158 0.0000 15.6835 2009 2.4714 0.1100 2.5814 4.5153 0.1451 4.6604 7.5430 0.0000 7.5430 0.4158 2.3299 17.5305 2010 2.4714 0.1100 2.5814 4.9000 0.1451 5.0451 7.7230 0.0000 7.7230 0.4158 2.3299 18.0952 Note Source: Seminole County Tax Collector (www.seminoletax.org) Overlapping rates are those of local and county governments that apply to property owners within the City of Winter Springs. 2 Taxes levied for the fiscal year are based on the prior year taxable value. 3 Fire Assessment fee was billed and City Millage rate was reduced for first year (only one year of fire assessment). 130 CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Tax Fiscal Year Year Oak Forest Tuskawilla Lighting and Beautification (TLBD) - Phase I Tuskawilla Lighting and Beautification (TLBD) - Phase II Assessments Assessments Assessments Assessments Assessments Assessments A A A rl A 2000 2001 $ 82,651 $ 79,689 $ 2,962 $ - $ 232 $ (232) - 2001 2002 82,225 80,062 2,163 459,090 446,121 12,969 - - - 2002 2003 82,678 78,809 3,869 393,704 376,256 17,448 - - - 2003 2004 83,344 80,400 2,944 391,976 377,978 13,998 - - - 2004 2005 99,595 97,388 2,207 390,204 379,601 10,603 - - - 2005 2006 99,595 95,977 3,618 390,204 377,175 13,029 - 94,522 (94,522) 2006 2007 99,595 96,117 3,478 390,017 376,343 13,674 248,710 240,475 8,235 2007 2008 116,075 112,355 3,720 714,414 693,075 21,339 42,341 40,959 1,382 2008 2009 116,237 112,228 4,009 714,371 690,915 23,456 42,324 41,236 1,088 2009 2010 116,237 112,356 3,881 688,482 665,066 23,416 42,280 40,904 1,376 Note 1 Includes prepayments. 2 Beginning in fiscal year 2008, the TLBD Phase I and II maintenance assessment were combined and collected as one assessment. TLBD Maintenance and Phase I Capital are shown in the TLBD Phase I program TLBD Phase II amount is capital improvement cost only. Special Assessment Debt Issued: Oak Forest June 2000 (Refinanced in June of 2004) TLBD Phase I May 2001 TLBD Phase II February 2006; No assessment levied until Fiscal Year 2007. 131 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS September 30, 2010 (amounts expressed in thousands) Source: Seminole County Property Appraiser (www.scpafl.org) 132 2010 2001 Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Laurel Oaks LLC $ 24,242 1 1.34% $ - - Progress Energy Florida Corporation 19,935 2 1.10% 12,219 2 1.15% Capital Green I LLC 18,175 3 1.00% - - Courtney Springs LLC 15,126 4 0.84% 11,895 3 1.12% Winter Springs Holdings, Inc 9,079 5 0.50% - - United Dominion Realty Trust 7,625 6 0.42% 7,569 4 0.71% BRI 1813 Villaggio Co -op Inc. 6,316 7 0.35% - - Bank of America NA 5,853 8 0.32% - - Baxley Robert & Annmarie TRS 5,703 9 0.32% - - Hacienda Village Co -op Inc. 5,602 10 0.31% 4,862 6 0.46% Golf Terrace, LTD - - 22,870 1 2.15% ZP No 56 LP - - 5,145 5 0.48% Centex Homes - - 4,416 7 0.41% Time Warner Entertainment - - 3,669 8 0.34% Bell South Communication - - 3,533 9 0.33% Winter Springs Golf LLC - - 2,639 10 0.25% Totals $ 117,656 6.50% $ 78,817 7.40% Source: Seminole County Property Appraiser (www.scpafl.org) 132 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Fiscal Year Ended Total Tax Levy September 30, for Fiscal Year 1 Amount 2 Collections in Percentage of Subsequent Levy Years Total Collections to Date Percentage of Amount Levy 2001 3,771,445 3,618,281 95.94% 7,288 3,625,569 96.13% 2002 4,467,419 4,324,807 96.81% 7,277 4,332,084 96.97% 2003 5,277,940 5,048,670 95.66% 9,160 5,057,830 95.83% 2004 6,215,233 3 5,982,716 96.26% 7,284 5,990,000 96.38% 2005 6,748,179 3 6,546,002 97.00% 11,385 6,557,387 97.17% 2006 7,890,100 3 7,591,158 96.21% 12,189 7,603,347 96.37% 2007 8,820,491 3 8,475,408 96.09% 2,214 8,477,622 96.11% 2008 7,442,693 3 7,145,070 96.00% 11,318 7,156,388 96.15% 2009 5,186,450 3 5,028,524 96.96% 14,586 5,043,110 97.24% 2010 4,671,821 3 4,503,950 96.41% 34,324 4,538,274 97.14% Note Gross taxes before discount of 1% - 4 %, depending on month paid; Source: Seminole County Property Appraiser (www.scpafl.org) 2 Source: Seminole County Tax Collector (www.seminoletax.org) 3 Includes voted debt service not to exceed .25 mills for Central Winds General Obligation Debt 133 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2010 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. 134 CITY OF WINTER SPRINGS, FLORIDA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last Ten Fiscal Years Note Source: Synergos Technologies Inc.: PopStats at June 2008; Previous years statistics may have come from multiple sources including East Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research and Metro Orlando Economic Development Commission (www.orlandoedc.com). 2 Source: Seminole County Property Appraiser (www.scpafl.org) 3 Amount does not include special assessment bonds and revenue bonds 4 Amount available for repayment of limited general obligation bonds, which were issued in 2002 135 Ratio of Net Bonded Gross Net Debt to Net Bonded Fiscal Assessed Bonded Less Debt Bonded Assessed Debt per Year Population 1 Value 2 Debt 3 Service Fund 4 Debt Value Capita 2001 31,666 1,065,390,000 - - - 0.000% - 2002 32,082 1,184,740,000 3,400,000 23,275 3,376,725 0.285% 105 2003 32,572 1,266,969,000 3,335,000 24,260 3,310,740 0.261% 102 2004 32,955 1,365,985,000 3,270,000 53,373 3,216,627 0.235% 98 2005 33,321 1,483,116,250 3,205,000 46,967 3,158,033 0.213% 95 2006 34,621 1,661,074,000 3,140,000 51,743 3,088,257 0.186% 89 2007 34,899 2,003,805,968 3,070,000 47,572 3,022,428 0.151% 87 2008 34,639 2,220,522,082 3,000,000 46,254 2,953,746 0.133% 85 2009 34,340 2,009,169,114 2,925,000 36,610 2,888,390 0.144% 84 2010 34,149 1,809,808,024 2,850,000 38,880 2,811,120 0.155% 82 Note Source: Synergos Technologies Inc.: PopStats at June 2008; Previous years statistics may have come from multiple sources including East Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research and Metro Orlando Economic Development Commission (www.orlandoedc.com). 2 Source: Seminole County Property Appraiser (www.scpafl.org) 3 Amount does not include special assessment bonds and revenue bonds 4 Amount available for repayment of limited general obligation bonds, which were issued in 2002 135 CITY OF WINTER SPRINGS, FLORIDA RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (dollars in thousands, except per capita) 136 Governmental Activities Business -Type Activities Fiscal Year Special Water and Water and Sewer Percentage of Ended Refunding Limited General Assessment Sewer Revenue Refunding Total Primary Personal September 30, Revenue Bonds Revenue Bond S2 Obligation Bonds Revenue Bonds Capital Leases Bonds Revenue Bonds 2 Capital Leases Government Income 1 Per Capita 1 2001 1,597 16,134 - 2,265 71 - 26,929 - 46,996 $1,484 2002 1,277 15,869 3,400 2,265 44 - 27,014 212 50,081 $1,561 2003 878 16,044 3,335 2,225 320 - 26,234 142 49,178 $1,510 2004 5,861 15,654 3,270 2,180 206 25,429 64 52,664 $1,598 2005 734 15,094 3,205 2,135 104 24,594 - 45,866 $1,376 2006 479 14,504 3,140 2,427 100 23,724 - 44,374 4.53% $1,282 2007 439 13,884 3,070 2,354 333 - 22,829 - 42,909 4.42% $1,230 2008 1,125 13,234 3,000 2,276 228 - 21,884 - 41,747 4.06% $1,205 2009 1,011 12,554 2,925 2,165 117 - 20,904 - 39,676 3.77% $1,155 2010 - 11,834 2,850 2,092 - - 19,889 - 36,665 3.50% $1,074 Note: Details regarding the city's outstanding debt can be found in the notes to the Financial Statements: Note 9: Long -Term Debt. Information is not available. 1 See Demographic and Economic Statistics for personal income and population data. These ratios are calculated using personal income and population. 2 Amounts do not include accreted Interest Payable for 1999 Improvement Refunding Revenue Bonds and 2000 Water and Sewer Refunding Revenue Bonds 136 CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2010 (amounts expressed in thousands) Estimated Estimated Share of Percentage Overlapping Governmental Unit Debt Outstanding Applicable 1 Debt Overlapping Debt: Seminole County General Obligation Debt Subtotal, overlapping debt Direct Debt: City of Winter Springs General Obligation Debt 2 Total direct and overlapping debt $ 12,465 2,850 $ 15,315 6.45% $ 804 100% 2,850 $ 3,654 Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board 1 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. 2 The City of Winter Springs has a "limited" general obligation bond that is being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. 137 CITY OF WINTER SPRINGS, FLORIDA PLEDGED - REVENUE COVERAGE Last Ten Fiscal Years General Government 138 Federal Emergency Impact Fees Budget & Management (Fire, Police, Appropriate Agency Public Recreation and Non -Ad Valorem Medical (General Fund Total Revenue Maximum Fiscal Year Public Service Electric Half -Cent Sales General Assistance Public Special Transport and Water & Available for Annual Debt Ended Sept 30, Taxes Franchise Fees Tax Obligation Grants Facilities) Assessments Revenue Sewer Fund) Debt Service Service Coverage 2001 2,492,952 1,253,696 160,000 - - - 79,921 61,488 173,335 4,221,392 1,775,599 2.38 2002 3,403,121 1,251,069 160,000 - - - 526,183 61,483 173,315 5,575,171 2,083,590 2.68 2003 3,460,992 1,275,670 160,000 - - - 455,065 61,485 173,313 5,586,525 2,144,039 2.61 2004 3,446,874 1,322,280 160,000 328,668 - 328,143 458,378 76,487 339,685 6,460,515 2,417,562 2.67 2005 3,504,158 1,436,996 160,000 358,960 7,127,760 166,203 476,989 - - 13,231,066 6,858,968 1.93 2006 3,831,569 1,775,460 160,000 219,736 - 518,072 567,674 - - 7,072,511 2,038,741 3.47 2007 3,919,603 1,759,245 160,000 212,077 - 3 - 712,935 - 30,000 6,793,863 1,751,594 3.88 2008 3,975,766 1,748,477 160,000 217,872 - - 846,389 - 60,000 7,008,504 1,828,176 3.83 2009 4,105,959 1,823,706 160,000 213,629 - - 844,379 - 60,000 7,207,673 2,615,188 2.76 2010 4,536,004 2,173,849 160,000 193,396 - - 180,254 - - 7,243,503 1,961,933 3.69 138 Note 1 Gross revenue is computed per bond resolution requirements, and is equivalent to revenue recognized under generally accepted accounting principles (GAAP). Revenues include investment income and other income. 2 "Direct operating expense" is computed per bond resolution requirements, and is equal to expenses recognized under GAAP (less interest, depreciation, and amortization expense, losses on disposal of fixed assets, and non - recurring transfers out). 3 Data has been restated 139 CITY OF WINTER SPRINGS, FLORIDA PLEDGED - REVENUE COVERAGE Last Ten Fiscal Years Water Revenue Bonds Debt Service Requirements Net Revenue Fiscal Year Gross Operating Available for Ended Sept 30, Revenues' Expenses 2 Debt Service Principal Interest Total Coverage 2001 6,176,985 3,438,641 2,738,344 930,000 1,383,337 2,313,337 1.18 2002 5,854,262 3,840,397 2,013,865 420,000 1,251,116 1,671,116 1.21 2003 6,309,545 3,992,489 2,317,056 780,000 1,046,997 1,826,997 1.27 2004 7,152,358 4,968,307 2,184,051 805,000 1,020,472 1,825,472 1.20 2005 7,497,904 4,862,108 2,635,796 835,000 1,006,910 1,841,910 1.43 2006 8,257,218 4,888,390 3,368,828 870,000 980,427 1,850,427 1.82 2007 8,084,483 5,163,896 2,920,587 895,000 944,302 1,839,302 1.59 2008 7,415,100 5,365,172 2,049,928 945,000 909,661 1,854,661 1.11 2009 7,376,924 5,298,633 2,078,291 980,000 871,309 1,851,309 1.12 2010 8,108,382 5,868,044 2,240,338 1,015,000 810,215 1,825,215 1.23 Note 1 Gross revenue is computed per bond resolution requirements, and is equivalent to revenue recognized under generally accepted accounting principles (GAAP). Revenues include investment income and other income. 2 "Direct operating expense" is computed per bond resolution requirements, and is equal to expenses recognized under GAAP (less interest, depreciation, and amortization expense, losses on disposal of fixed assets, and non - recurring transfers out). 3 Data has been restated 139 CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Data not available Note 1 Source: Metro Orlando Economic Development Commission (www.orlandoedc.com) 2 Source: Seminole County Public Schools 3 Source: US Department of Labor, Bureau of Labor Statistics (data.bls.gov) - Rate for "Orlando" Metropolitan area 140 Personal Education Income Level in (amounts Years of expressed in Per Capita Median Formal School Unemploy- Fiscal Year Population thousands) Personal Income 1 Age l Schooling 1 Enrollment 2 ment Rate 3 2001 31,666 6,421 3.5% 2002 32,082 6,508 5.8% 2003 32,572 7,413 5.3% 2004 32,955 7,476 4.6% 2005 33,321 7,492 3.8% 2006 34,621 979,428 28,290 39.3 13.97 7,342 3.2% 2007 34,899 971,623 27,841 39.8 13.93 7,115 3.6% 2008 34,639 1,028,951 29,705 40 13.72 6,804 5.0% 2009 34,340 1,053,173 30,669 40.3 13.72 6,754 9.7% 2010 34 1 30 41 13.82 6 11.8% Data not available Note 1 Source: Metro Orlando Economic Development Commission (www.orlandoedc.com) 2 Source: Seminole County Public Schools 3 Source: US Department of Labor, Bureau of Labor Statistics (data.bls.gov) - Rate for "Orlando" Metropolitan area 140 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2010 1 2001 Percentage of Percentage Total C itv of Tntn i (` itv Employer Employees Seminole County School Board 1,423 City of Winter Springs 231 Publix (Winter Springs Town Center) 128 Dearborn Electronics 123 Tuscawilla Country Club 86 Modern Plumbing 80 United States Post Office 47 Dittmer Architectural Aluminum 42 The Grove Counseling Center 39 McDonalds - Winter Springs 38 1 30.28% 2 4.91% 3 2.72% 4 2.62% 5 1.83% 6 1.70% 7 1.00% 8 0.89% 9 0.83% 10 0.81% Total 2,237 47.59% Note Data Not Available 1 Per telephone survey of major local businesses 2 Per Metro Orlando Economic Development Commission (www.orlandoedc.com), the City of Winter Springs has an estimated daytime working population of 4500 FTEs with approximately 647 business establishments as of June 2009. 141 CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full -time Equivalent Employees as of September 30, Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Development Services 1 6 6 8 8 10 10 10 10 5 5 General Government 36 38 36 37 41 44 44 44 45 42 Public Safety: Police Sworn Officers 54 59 59 64 64 70 70 70 70 70 Non sworn officers - - - - 0 0 0 0 0 0 Civilians 2 20 20 20 20 20.75 20.75 20.75 20.75 20.75 20.75 Fire 4 Firefighters and officers 38 41 49 50 50 51 51 51 0 0 Civilians 1 1 1 2 2 2 2 2 0 0 Public Works 21 22 21 23 23 21 21 21 21 20.73 Culture and Recreation 20 19 20 21 32.34 33.67 35.78 36.63 34.07 31.86 Utilities 35 36 35 40 42 42 43 45 45 45 Stormwater 5 6 7 7 7 9 9 9 9 9 Total 236 248 256 272 292.09 303.42 306.53 309.38 249.82 244.34 Part -time Employees 24 24 23 Part -time FTEs 3 11.09 12.42 14.53 15.38 16.32 16.34 Note * Data not available Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety: Community Development - Building. 2 Police civilians include emergency communications center operations personnel. 3 FTEs - Full -time Equivalent Units; this statistic replaces part -time employee count starting in Fiscal Year 2005 and these units are included in the appropriate function totals for FY 2005 - 2009. 4 Department was consolidated 10/02/08 with Seminole County Fire Department 142 143 City of Winter Springs, Florida OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Function Police Auto accidents 383 442 495 508 505 530 444 546 404 345 Physical arrests 966 640 588 627 1,128 1,633 1,582 1,708 1,928 1,347 Criminal investigations conducted 614 552 437 450 591 551 291 357 464 441 Total calls for service 30,457 47,550 76,958 83,290 91,904 107,074 125,789 142,202 133,527 131,587 911 calls received 6,077 6,087 5,506 5,786 6,931 5,174 5,781 5,248 4,937 3,654 Evidence processed (pieces) 2,396 2,068 2,436 1,820 1,721 2,221 1,730 Fire' Public education programs 147 136 118 65 61 53 118 56 N/A N/A Number of emergency calls answered 3,264 3,129 2,898 3,426 3,258 3,261 3,338 3,345 N/A N/A Medical transports 1,026 1,089 1,008 1,146 1,126 1,159 1,284 1,300 N/A N/A Highways and streets Streets paved (miles) 0.01 0.36 0.99 0.85 0.00 0.00 0.57 0.00 0.00 2.00 Streets resurfaced (square yards) 37,778 51,132 40,658 44,257 44,945 23,925 35,537 72,400 43,018 36,927 Sidewalks /bike paths built or repaired (feet) 4,323 3,226 2,345 5,371 3,834 4,159 22,112 5,134 4,486 3,980 Culture and recreation Games - Baseball /Softball 1,502 1,643 1,565 1,468 1,521 1,075 Games - Basketball 652 644 606 599 371 458 Games - Football 286 285 298 271 222 222 Games - Soccer 1,029 1,010 905 970 1,005 816 Senior Activities 817 769 753 899 1,651 1,154 898 1,108 1,071 Civic Center & Pavilion Rentals 196 245 267 319 379 379 362 430 Program Events 312 345 312 310 221 205 240 275 143 Water New connections 156 204 198 132 260 279 179 19 13 3 Number of customers 12,136 11,316 12,066 11,903 12,104 12,444 12,514 12,706 12,802 12,749 Water main breaks 6 6 16 13 13 21 12 Average daily consumption (gallons /per capita) 114 110 106 115 108 126 125 115 110 106 Meter reads 171,167 174,604 175,478 171,976 Community Development Total permits issued 1,773 2,182 2,846 2,834 4,217 2,805 2,405 2,741 2,808 3,105 Building inspections 4,378 7,703 16,651 16,869 16,669 15,574 9,473 7,278 4,931 4,832 Business tax receipts issued 1,944 1,135 942 1,275 Land use amendments & rezonings 11 8 14 16 12 4 23 5 9 2 Permits files created /reviews initiated 2,545 3,349 3,408 3,754 General Government Personnel actions processed 225 290 315 360 332 637 500 609 166 Worker's Comp Injuries 35 35 44 48 47 37 52 51 30 41 Legal notices published 38 41 22 28 Payroll - Checks 4,013 3,493 1,411 301 275 312 337 220 242 Payroll - Direct Deposit 2,969 3,795 5,941 7,311 7,524 7,592 7,557 6,210 5,927 Receipts deposited 169,556 182,195 192,439 185,716 202,307 186,401 189,977 A/P checks issued 7,975 7,929 7,768 7,914 7,460 7,014 8,829 6,348 Purchase orders /EPO's processed 5,331 5,669 6,227 5,737 5,412 5,205 4,772 3,930 3,667 Source: Summary of Departmental Reports Note Information not available Department was consolidated with Seminole County Fire Department effective 10/02/08 144 145 City of Winter Springs, Florida CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Function Public safety Police: Stations 1 1 1 1 1 1 1 1 2 2 Fleet 75 75 75 79 78 Fire stations' 2 2 2 3 3 3 3 3 3 3 Highways and streets Streets - paved (miles) 91.91 92.27 93.26 94.11 94.11 94.11 95.32 95.32 95.32 97.32 Streets - unpaved (miles) 6.67 7.10 7.25 6.40 6.40 7.16 6.40 6.40 6.40 4.40 Street lights 1,884 1,901 2,095 2,158 2,158 2,300 2,300 Traffic signals 7 7 8 9 9 10 10 10 10 10 Culture and recreation Park acreage 228 255 267.20 267.70 267.70 267.70 267.70 267.70 267.70 267.70 Parks - Community 5 5 5 5 5 5 6 6 6 6 Parks - Neighborhood 6 6 6 7 7 7 7 7 7 7 Senior Center 1 1 1 1 1 1 1 1 1 1 Community Center 1 1 1 1 1 1 1 1 1 1 Water Water mains (miles) 144.3 144.7 150.1 155.1 158.9 160.4 161.7 167.6 167.6 167.6 Fire hydrants 882 914 929 931 964 975 995 1,000 1,000 1,000 Maximum daily capacity (millions of gallons) 12 12 12 12 12 12 12 12 12 12 Deep Wells 7 7 7 7 7 8 8 8 8 8 Sewer Sanitary sewers (miles) 100.20 100.50 103.31 105.27 106.97 108.30 108.90 135.50 111.57 11.57 Storm sewers (miles) 91.01 91.56 91.56 91.56 91.56 Treatment facility capacity (millions of gallons) 4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 Current average flow (millions of gallons) 2.179 2.179 2.343 2.285 2.297 2.243 2.209 2.198 2.142 2.100 Source: Summary of Departmental Reports Note Information not available ' Seminole County is leasing stations per Consolidation Agreement 145 This page intentionally left blank, /�4 F� Z53 4 ,'�K �Zo o� OTHER REPORTS This pave intentionally left blankL U * � �LOR10.% MCDIRMI' /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING TI AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT F FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor a nd City Commissioners City of Winter Springs, Florida We have audited the financial statements of City of Winter Springs, Florida, as of and for the year ended September 30, 2010, and have issued o u r report hereon dated Februar 2011. W conducted our audit in accordance with auditing standards generally accepted in the United States of America rid the standards applicable to financial audits contained in oar mmeat Auditing S tandards issued b the Comptrolle General of the United States. Internal control Over Financial Reporting In planning and performing our audit, w considered the City's Internal control over financial reporting as a basis for designing our a uditing procedu for the purpose of expressing our opinion on the financial t t m ernts, but not for the purpose of expressing an opinion on the effectiveness of the city's internal control over financial reporting. ccordirn l , we do not express an opinion on the effectiveness of the City's internal control over fi re porting. deficiency in internal control e i sts when the d esig n o r o pe rati on of a contro I does not a I I oar mana of emplo i I the nor l course of performin their a ssigned f unct i ons, to prevent or detect and correct misstatements on timel basis. material w a 1 r ss is deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our c onsideration of internal control over financial reporting was for the limited p u r pose described in the first paragraph of this section and was not designed to identify all deficiencies i n internal contro l over financial reporting that rn ig ht be d ficlen cies, si nifi arnt d ficle n cies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be materr al weaknesses, as defined above. Compliance and Other Matter As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, o ntr t and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing are opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other ratters that are required to be reported under o vemm e rat A udifing Standards. 601 E, ROBINSON STREET, SUITE 635 • OR LAM) ., FLORIDA 32801 TELEPHONF 407-943-5406 @ FAx 407-649-93,19 • EMAIL. [;NF iMCDIRMITDA'\" IS.COM M FM R F RS; Pik Il ATE COMPANEES PRAC'TIC E SF.CTICIN' - AMFR IL'ltiN INST1TUTF 0r CT-. IFIED P1 t 1iC,IC` ACCT q, NT.ANTS i FI,CRIDA INIMTUTF OF C URTIFIED PUBLIC ACC O N ]'ANTS 146 We noted certain matters that we reported to management of the City of Winter Springs in a separate letter dated February 23, 2011. They City's response to our findings identified in our audit is included in this report. We did not audit the City's response, and accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the 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. r February 23, 2011 147 MCDIRMIT'/// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR' S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE To EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER MPLI NCE IN ACCORDANCE WITH OMB CIRCULAR A -133 Honorable Mayor and City Comm issioners City of Winter Springs, Florida Compliance We have u d itd City of Winter Springs., Florida's (the city) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the requi rements described in the Executive Office of the Governor's State Projects Compliance Supplement that could have a direct nd material effect on each of the City's major fede r l programs and state projects for the year ended ept ber 30, 2010. The City's major fede programs and state projects are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of lags, regulations, contracts, and grants applicable to each of its major federal prog a nd state projects is the responsibility of the City's management. Our responsibility is to express are opinion on the city's compliance based on our a udit. 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 Go vemment Auditing S tandards, issued by the Comptroller General of the United States; OMB i rcuI a r - 13 3 , Audits of States, Local Go vem meat , a rid on- Profit Organiza tions; a n Chapter 10.650, Rules of the Auditor General. Those standards, OMB Circular A-133 and Cahpter 10.650, Rules of the Auditor General, req uire that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the typos of compliance requirements referred to above that could have a direct and material effect on a major federal prop ram or state project occurred. An audit includes exam i n i rig , on a test basis, evidence about the city's compliance Frith those requi and performing such other procedu a s we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. u r audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the compliance requirements ref erred to above that could h ave a direct and material effect on each of its major federal programs and state projects for the year ended September 30 0 2010. I I MIT DAvis & ComPANYI, LLC 615 E ROBINSON STREET, SMITE 635 # ORLANDO, FLORIDA 32801 TELEPHONE 407-843- m FAX 407 - 649 -9339 i EMAIL„ I NF @ L%IC IR MITI)AVI .COLM K1 I M 11 FR S: Piz WAX I? C0.143 LES PRAC'7 LC E_ U ( 1' I4 1'4 ■ Ali h'AWAN I NSTITUTE OV Cf:RTF f ED PI! 13IN ACC_OU NTANTS + FLORI DA I NSTI7 L -TG OF CuR L I Pt tt- D PL'lk Lic Ac co L'Twl`ANTS 148 Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs and state projects. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133 and Chapter 10.650, Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with the type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management, the City Commissioners, the Auditor General of the State of Florida, and federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. WN99 i February 23, 2011 149 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2010 Award type Federal grantor Federal Pass - through grantor CFDA Agency or Pass - through Federal Program title Number Entity Grant Number Expenditures ARRA federal awards - United States Department of Transportation passed through State of Florida, Department of Transportation Highway Planning and Construction (Federal -Aid Highway Program) * 20.205 ARRA #253 -B / 426326- 1 -58 -01 $ 160 Highway Planning and Construction (Federal -Aid Highway Program) * 20.205 ARRA #312 -B / 426733- 1 -58 -01 168 Highway Planning and Construction (Federal -Aid Highway Program) * 20.205 ARRA #257 -B / 426330- 2 -58 -01 387 United States Department of Justice passed through State of Florida, Department of Law Enforcement Edward Byrne Memorial Justice Assistance Grant (JAG) Program 16.803 2010 -ARRC- SEMI -9 -W7 -242 109 Edward Byrne Memorial Justice Assistance Grant (JAG) Program 16.804 2009 -SB -B9 -2191 32 United States Department of Agriculture passed through State of Florida, Department of Agriculture and Consumer Affairs National Forest Lands 10.668 10A -130 18 Other federal awards - United States Department of Transportation passed through State of Florida, Department of Transportation Highway Planning and Construction (Federal -Aid Highway Program) * 20.205 424797- 1 -58 -01 100 United States Department of Justice passed through State of Florida, Department of Law Enforcement Edward Byrne Memorial Justice Assistance Grant (JAG) Program 16.738 2010 -JAGC- SEMI -2 -4X -097 3 Edward Byrne Memorial Justice Assistance Grant (JAG) Program 16.738 2010 -JAGD- SEMI -3 -4Y -066 4 Total federal awards * Denotes a major program $ 986 See accompanying Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 150 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE Year Ended September 30, 2010 State State grantor CSFA State Grantor program title Number Grant Number Expenditures State of Florida, Department of Environmental Protection Florida Recreation Development Assistance Program (FRDAP) 37.017 Project #A09134 $ 74 Statewide Surface Water Restoration and Wastewater Projects * 37.039 Contract #25463 1 Total state financial assistance * Denotes a major program 4.1 1 nal 909 See accompanying Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 151 CITY OF WINTER SPRINGS, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND SCHEDULE OF STATE FINANCIAL ASSISTANCE Year Ended September 30, 2010 Note 1 - Basis of Presentation: The accompanying schedule of expenditures of federal awards and schedule of state financial assistance (the Schedules) includes the federal and state grant activity of the City of Winter Springs, Florida (the City) under programs of the federal and state government for the year ended September 30, 2010. The information in the schedule of expenditures of federal awards is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. The information in the schedule of expenditures of state financial assistance is presented in accordance with the requirements of Section 215.97, Florida Statutes. Because the Schedules present only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets or cash flows of the City. Note 2 - Summary of Significant Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Federal expenditures are recognized following the cost principles contained in OMB Circular A -87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule of expenditures of federal awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass - through entity identifying numbers are presented where available. 152 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL AWARD PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS Year Ended September 30, 2010 Part A - Summary of Auditor's Results: 1. The auditor's report expresses an unqualified opinion on the financial statements of the City of Winter Springs, Florida (the City). 2. No significant deficiencies relating to the audit of the financial statements are reported in the Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the City, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs or state projects are reported in the Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A -133. 5. The auditor's report on compliance for the major federal award programs and state projects for the City expresses an unqualified opinion on all major federal programs. 6. Audit findings that are required to be reported in accordance with Section 510(a) of OMB Circular A -133 are reported in this Schedule. 7. The programs tested as major programs included: U.S. Department of Transportation Highway Planning and Construction (Federal -aid highway program (CFDA 20.205) and Florida Department of Environmental Protection Statewide Surface Water Restoration and Wastewater Projects (CSFA 37.039). 8. The threshold used for distinguishing between Type A and B programs was $300,000. 9. The City did not qualify as a low -risk auditee. Part B - Findings — Financial Statement Audit: None Part C - Findings and Questioned Costs — Major Federal Award Programs Audit: None Part D - Findings and Questioned Costs — Major State Financial Assistance Projects Audit: None 153 MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS MANAGEMENT LETTER Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the financial statements of the City of Winter Springs, Florida, as of and for the fl scal yea r ended Septem be r 30, 2010 a nd h ave i ss ued ou r re port the ron darted Fbru a ry 23, 2011. We conducted our audit in accordance with United States generally accepted audIting standards; the standards ppl i bl to financial audits contained in Govemment Auditing Standards, issued by the Co m ptrol ler Genera I of the U nit d States; and OM B Circula r -1 , Audits of States., Local overnmetits, and Non- Profit O r g aniz ation . We h ave issued our Re port on I nt e rnaI Control over Financial Reporting and on Compliance and Other Batters, as well as the Report on Compliance with Requi rements A pplicable to each Major Federal Program and Internal Control over Compliance in Accordance with OMB B i rcu lar A-133, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedules, which are dated February 23, 2011 should be conside in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida, and unless oth rwi req to be reported i n the report t ors compliance and internal controls, this letter is required to include the following information. Section 10.554(l)(i )l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been token to address significant findings and recommendations made in the preceding annual financial audit report. The status of management's response to recommendations included in the preceding annual financial report is outlined in Appendix C to this report. Section 1 0.554( 1 )(i., Mules of the Auditor General, requires our audit to include a review of the provisions of Section 218,415, Florida Statutes, regard the investment of public funds. In connection with our audit, we determined that the City of Winter Sp rings, Florida complied with Section 218.415, Florida Statutes. Section 10.554( 1 )(i., Mules of the Auditor General,, requires that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. Recommendations to improve the City's financial management 3 accounting procedures and internal controls are reported in Appendix B to t h i report. Section 1 0.554(1 )(i 4., Mules of the Auditor General, requires that we address violation of provisions of contracts and grant agreements or abuse that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit, we dad not have any such findin MCDIRMIT DAvis & COMPANY, LLC 005 E. ROBINSON STREET, S U LTB 635 * ORLANDO., FI DRI IAA 3 801 TELEPHONE- 40 7 -843- 5406 • F A X 407- 649 -9339 # E MA]l.: I NFO @ MCD f R ITI)AN' IS, CO t M:..MFI PIS l A11- COWAN IES PRACT rC F S Ff "I' 11 MN • AM 1; WAN I MST - M - 1 "F OF (7r- -D P1 ' R 1.1 C A-CC lU YTS %N 5 + FLOR IDA I NST9 u OF C k RTI P1 E L) PU 13 LAC ACCOL' MAIM 154 Section 10.554(1)(i)5., Rules of the Auditor General, requires based on professional judgment, the reporting of the following matters that are inconsequential to the financial statements, considering both quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions or abuse that have occurred, or were likely to have occurred, and would have an immaterial effect on the financial statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the financial statements; and (3) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. This information has been discarded in Appendix A to this report. • Section 10.554(1)(1)6., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements. • Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of Winter Springs, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. • Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the City of Winter Springs, Florida for the fiscal year ended September 30, 2010, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2010. We determined that these two reports are in agreement. • Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we apply financial condition assessment procedures. In connection with our audit, we applied financial condition assessment procedures. It is management's responsibility to monitor the entity's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. This management letter is intended solely for the information of the City of Winter Springs, Florida and management, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. dab r February 23, 2011 155 CITY OF WINTER SPRINGS, FLORIDA APPENDIX A- CURRENT YEAR VIOLATIONS OF LAWS, RULES, REGULATIONS, AND CONTRACTUAL PROVISIONS For the Year Ended September 30, 2010 ML 10 -1 Deficit Fund Balance Criteria - The city should establish sufficient revenues which will provide for necessary expenses or expenditures. Condition — At September 30, 2010 the Development Services fund had a deficit net asset balance of $393,782 and the Oak Forest Debt Service Fund had a deficit fund balance of $310,251. Cause - The revenues of the Development Services fund are not sufficient to pay operating expenses of the fund. The Oak Forest Special Assessment Note was paid off with a loan from the General Fund resulting in expenditures exceeding revenues and fund balance available. Effect - The funds require loans from the general fund and general revenues for operating expenditures. Recommendation — We recommend that the City consider revising the rates for the Development Services fund to provide sufficient revenues to cover operating expenses. We realize that the Oak Forest Debt Service Fund will have a deficit fund balance for many years until all assessment receivables are collected and paid back to the General Fund. 156 CITY OF WINTER SPRINGS, FLORIDA APPENDIX 6 - CURRENT YEAR RECOMMENDATIONS TO IMPROVE THE CITY'S FINANCIAL MANAGEMENT, ACCOUNTING PROCEDURES AND INTERNAL CONTROLS For the Year Ended September, 30, 2010 ML 10 -2 Controls Over Cash Receipts Criteria - The City's cash receipts policies and procedures require supervisory approval of cash verification logs. Condition — During our audit procedures we noted a few cash verification logs that did not have supervisory approval or cashier approval Cause - Cashiers and supervisors are not properly documenting procedures followed. Effect — Discrepancies in drawer balances or deposit amounts may not be detected in a timely manner. Recommendation — We recommend that two people always be present to count the drawers for close -outs, and sign off on the cash verification log. If supervisor has a drawer to close, there should also be a second sign off to verify the total. ML 10 -3 Payroll Review Criteria — Payroll reports should be reviewed and approved before payroll is processed. Condition — There is no documentation of payroll reports being reviewed. Cause — The person who processes payroll has the ability to change pay -rates in the system, and prints an exception report to show any changes, however there isn't documentation of this review. Effect — Unauthorized changes to payroll may go undetected. Recommendation — We recommend that the City remove the payroll processor's ability to change pay rates in the system or have a second person print the exception report and review for any changes. 157 CITY OF WINTER SPRINGS, FLORIDA APPENDIX C - PRIOR YEAR RECOMMENDATIONS For the Year Ended September, 30, 2010 No. Prior Year's Observations Observation is Still Relevant Observation Addressed or No Longer Relevant KI M L09 -01 Segregation of duties over payroll processing 158 �1N'rE1� s � V �LOR10� CITY of WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708 -2799 TELEPHONE: (407) 327-1800 FACSIMILE: (407) 327 -4753 WEBSITE: www.winterspringsfl.org March 21, 2011 McDirmit, Davis & Company, LLC 505 East Robinson Street, Suite 535 Orlando, FL 32801 Dear Sir or Madam: Your management comments related to fiscal year ended September 30, 2010 were ►►veil received by both the City Manager and the Finance Department. The comments represent an opportunity for improvement to be pursued during fiscal year 2011. Below are our responses to your management comments as required by the Rules of the Auditor General of the State of Florida. ML 10 -1 Deficit Fund Balance As of September 30; 2010, there is a deficit fund balance in the Development Services Fund. Management is aware of this but has concluded that current economic conditions do not support increasing fees at this time. As of September 30, 2010, there is a deficit fund balance in the oak Forest Debt Service Fund of $310,251. This represents an internal loan made by the General Fund to the oak Forest Special Assessment District's Debt Service Fund as a result of the refinancing of a balloon note which matured in fiscal year 2010. The Commission approved a seven year reimbursement to the General Fund out of special assessment taxes being charged to the residents. 159 ML 10 -2 Controls over Cash Receipts The City's policy and procedures require supervisory approval of the cash verification logs. As noted in your comment, a few verification logs were not signed by the cashier or the supervisor. The counting and verification of cash is vital to the daily balancing not only of the cash drawers but the transactions posted daily. The cashier counts down his/her drawer; it is then verified by another cashier, supervisor or designee. Staff has been reminded of the importance of their signatures confirming that this process has been done. The Controller will audit this function throughout the year. ML 10 -3 Payroll Review Exceptions reports were designed to assist in the review of the payroll processing. The reports detect changes in pay rates made by anyone other than the Human Resources Coordinator. The exceptions reports are to be reviewed by and approved by the HR Coordinator. while the reports were being generated and reviewed, the HR Coordinator was not indicating that this review was completed. The HR Coordinator is now initialing every page as evidence of this review process. The Controller will audit this function throughout the year. Sincerely, Kevin L. Smith City Manager i s , , Shawn Boyle Finance and Administrative Services Director MOTO] MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the financial statements nt of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, of the City of Winter Springs, Florida for the year ended September 30, 2010. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Govemment Auditing Standards and OMB Circular A-133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 2 8 , 2010. Professional standards also req uire that we communicate to you the following information related to our audit. imifi ant Audit Findings Qu alitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Winter Springs, Florida a described in Note 1 to the financial statements+ No new accounting policies we adopted and the application of existing policies was not charged during 010. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or on ensu . There are no s ignificant transactions that have been recog nized in the financial statements in a different period than when the transaction occurred. Accounting estimates are are integral part of the financial statements prepared by management and are based on management's kno ledg a and experience bout past and cu rrent events a n d assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ s ignificantly from th expected. The most sensitive estimates affecting the city's financial statement were: Management's estimate for the allowance for doubtful account is based on historical loss revels, and an analysis of the individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate for the allowance for depreciation is based on the estimated useful lives of the capital assets. We evaluated the reasonableness of the useful lives as well as the depreciation methods in determining that it is reasonable in relation to the financial statements taken as a whole. MCDIRMIT DAvis & COMPANY, LL 605 E. RoBINSON' SFFR EET, SUITE 635 0 ORLANDO, FLORIDA 32801 TE 413 7 - 843 -5406 • FAX 407 - 649 -9339 ■ EMA11,. I NFO @ MCI) IRMrrDAVI .COM MF.Y14FRS; PR C[ ?MPA PRA(71CI: SFC'TIC I?' ■ AMA ,RIC AN INSTITI!TF OF ("ERTIFIf "T) PI! R1.IC ACCOUN'E: NTH d- FLORIDA imm E OF cERn 'ICz C? PU11LIC ACCOL "N I`ANT:S 161 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February 23, 2011. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of management, 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. Very truly yours, dab r February 23, 2011 162 t� CITY of WINTER SPRINGS, FLORIDA Incorporated y 1959 1126 EAST STATE ROAD 434 OR WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 March 1 8, 2011 AFFIDAVIT OF IMPACT FEE COMPLIANCE Impact Fees are assessed in accordance with Chapter 9: Land Development, Article VIII Impact Fees, of the City of Winter springs code of Ordinances. impact fee collections, expenditures and accounting are provided for in separate accounting funds and comply with Florida statue 163.31801. ' 61 Shawn Boyle Finance and Administrative Services Director 163 This page intentionally left blank. A G N